The Resignation Settlement Agreement is utilized when an employee and employer wish to formally document the terms of a voluntary separation from employment. This contract type serves to protect both parties by clearly outlining financial arrangements, ongoing obligations, and mutual releases of claims. It is particularly important in the United States, where it must comply with federal statutes such as the Age Discrimination in Employment Act and state-specific labor laws. The agreement typically includes severance payments, benefit arrangements, confidentiality provisions, and comprehensive releases of potential legal claims.
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1. Parties: Identifies the employer and employee entering into the agreement
2. Background: States the context of the resignation and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Effective Date of Resignation: Specifies the employee's last day of employment
5. Settlement Payment: Details the amount, timing, and terms of any settlement payment
6. Release of Claims: Comprehensive release of legal claims by the employee
7. Confidentiality: Obligations regarding non-disclosure of agreement terms
8. Return of Company Property: Requirements for returning company assets and documents
9. Governing Law: Specifies the jurisdiction governing the agreement
1. Non-Compete Provisions: Restrictions on future employment, included when protecting company interests from competition is crucial
2. Non-Solicitation: Restrictions on soliciting employees or customers, included when protecting business relationships is important
3. Benefits Continuation: Terms for continuing health insurance or other benefits, included when offering extended benefits as part of settlement
4. Reference Provision: Terms regarding future employment references, included when agreeing on how future reference requests will be handled
5. Outplacement Services: Terms of career transition assistance, included when providing career transition support
1. Schedule A - Settlement Payment Details: Detailed breakdown of settlement amounts and payment schedule
2. Schedule B - Company Property Checklist: List of company property to be returned
3. Schedule C - Benefits Summary: Details of any continuing benefits arrangements
4. Appendix 1 - Release of Claims: Detailed release language required by state/federal law
5. Appendix 2 - ADEA Disclosure: Required age discrimination disclosure for employees over 40
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