A Severance Agreement Mutual Non Disparagement is utilized when an employment relationship is terminated and both parties wish to establish clear terms for separation. This document, commonly used in U.S. jurisdictions, typically includes severance payment details, benefit continuation terms, release of claims, and mutual promises not to make negative statements about each other. It's particularly important in sensitive departures where protecting both parties' reputations is crucial. The agreement must comply with federal and state employment laws, including specific requirements for age-related waivers under the ADEA and OWBPA.
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1. Parties: Identification of employer and employee with full legal names and addresses
2. Background: Context of employment termination and purpose of agreement
3. Definitions: Key terms used throughout the agreement
4. Severance Payment: Amount, timing, and conditions of severance payment
5. Mutual Non-Disparagement: Terms of mutual agreement not to make negative statements, including carve-outs for legally protected communications
6. Release of Claims: Employee's waiver of legal claims against employer, including specific reference to federal and state laws
7. Confidentiality: Terms regarding maintaining confidentiality of agreement and company information
8. Governing Law: Specification of applicable jurisdiction and choice of law
1. Outplacement Services: Details of career transition support services provided by the employer
2. COBRA Continuation: Terms of continued health benefits and payment of COBRA premiums
3. Return of Company Property: Process and timeline for returning company assets and verification procedure
4. Post-Employment References: Terms regarding future employment references and authorized company contacts
5. Equity Compensation: Treatment of stock options, RSUs, or other equity compensation
1. Schedule A - Severance Calculation: Detailed breakdown of severance payment calculation including base salary, bonuses, and deductions
2. Schedule B - Employee Benefits Summary: Comprehensive list of benefits and their continuation terms post-employment
3. Appendix 1 - OWBPA Disclosure: Required age discrimination disclosure for group terminations including eligibility factors and time limits
4. Appendix 2 - Release of Claims Details: Detailed list of specific claims being released and those preserved by law
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