The Termination of Employment Contract is essential when ending an employment relationship in the United States. It's used to document the formal separation between employer and employee, whether the termination is voluntary or involuntary. This document addresses crucial elements including final pay, benefits continuation, return of company property, and any post-employment obligations. It ensures compliance with federal laws such as FLSA, COBRA, and state-specific requirements while providing legal protection for both parties through clear documentation of the separation terms.
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1. Parties: Identification of employer and employee including full legal names and addresses
2. Background: Reference to original employment agreement, current position, and context for termination
3. Definitions: Key terms used throughout the agreement including 'Termination Date', 'Confidential Information', and 'Company Property'
4. Effective Date of Termination: Specific date when the employment relationship will end and final day of work
5. Final Payment Terms: Details of final salary payment, accrued vacation, benefits, and other compensation due
6. Company Property Return: Requirements and timeline for returning all company assets, documents, and intellectual property
7. Continuing Obligations: Ongoing duties regarding confidentiality, intellectual property, and any surviving clauses from original employment agreement
8. Signatures: Execution blocks for both parties with dates and witness requirements
1. Severance Package: Details of any additional compensation, payment schedule, and conditions for receiving severance
2. Non-Compete Provisions: Post-employment restrictions on competition, including duration and geographic scope
3. Release of Claims: Mutual release of potential legal claims and waiver of rights
4. Reference and Announcement: Agreement on how departure will be communicated and handling of reference requests
5. Outplacement Services: Details of any career transition support services provided
1. Schedule A - Company Property List: Itemized list of company property to be returned including equipment, documents, and access cards
2. Schedule B - Severance Calculation: Detailed breakdown of severance payment calculation including basis and deductions
3. Schedule C - Benefits Summary: Summary of post-termination benefits including health insurance continuation and COBRA details
4. Schedule D - Release Agreement: Detailed release of claims document if separate from main agreement
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