The Separation Terms Agreement serves as a comprehensive document that formalizes the end of an employment relationship while protecting both employer and employee interests. This agreement is particularly crucial when implementing redundancies, voluntary departures, or mutual separations. It must comply with U.S. federal and state employment laws, including specific requirements for different age groups and circumstances. The document typically includes detailed provisions about final compensation, benefits continuation, confidentiality obligations, and release of potential legal claims. A well-drafted Separation Terms Agreement can help prevent future disputes and provide clarity for both parties regarding their rights and obligations post-employment.
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1. Parties: Identification of employer and employee
2. Background: Context of employment and reason for separation
3. Definitions: Key terms used throughout the agreement
4. Separation Date: Specific date employment ends and related logistics
5. Final Payment Terms: Details of final salary, benefits, and other compensation
6. Release of Claims: Mutual release of legal claims and waiver of rights
7. Confidentiality: Terms regarding non-disclosure of agreement and company information
1. Severance Payment: Additional compensation beyond final payment, including payment schedule and conditions
2. Non-Compete: Restrictions on future employment and competitive activities
3. Non-Solicitation: Restrictions on soliciting employees, customers, or business partners
4. Reference Protocol: Agreement on how future employment references will be handled
5. Outplacement Services: Details of any career transition support provided
1. Schedule A - Benefits Summary: Detailed list of benefits and their treatment post-separation
2. Schedule B - Final Payment Calculation: Breakdown of final payment including salary, bonuses, and PTO
3. Schedule C - Company Property: List of company property to be returned
4. Appendix 1 - ADEA Disclosure: Required age discrimination disclosures for employees over 40
5. Appendix 2 - State-Specific Disclosures: Additional disclosures required by applicable state laws
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