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Severance Agreement template
Severance Agreement sample


What is Severance Agreement?

Severance Agreement A Severance Agreement outlines terms for severance packages offered to employees upon termination, specifying severance pay, benefits continuation, and release of claims.



Sample template:



SEVERANCE AGREEMENT


This Severance Agreement (the "Agreement") is entered into as of [Date], by and between Harmony Industries Inc., a [State] corporation ("Employer"), and [Employee's Full Name] ("Employee"), collectively referred to as the "Parties."

1. Termin ation

1.1. Termination Date


Employee's employment with Employer shall terminate as of [Termination Date] (the "Termination Date").



2. Severance Benefits

2.1. Severance Pay


In consideration for Employee's execution, non-revocation, and compliance with the provisions of this Agreement, Employer shall pay Employee severance pay in a lump sum amount equivalent to [Number of Weeks] of Employee's base salary, as of the Termination Date, less all applicable withholdings and deductions. This severance pay shall be paid within thirty (30) days following the Effective Date of this Agreement, as defined in Section 9 below.



2.2. Benefits Continuation


Provided Employee timely elects continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA"), Employer shall, for a period of [Number of Months] following the Termination Date, or until Employee becomes eligible for coverage under another employer's group health plan, whichever comes earlier, continue to provide Employee with health insurance benefits to which Employee was entitled immediately prior to the Termination Date, on the same terms and conditions as such benefits were provided immediately prior to the Termination Date. Employee shall be responsible for any employee contributions, co-pays, or deductibles required under the terms of the applicable plan(s).



3. Release of Claims

Employee hereby fully, forever, irrevocably, and unconditionally releases, remises, and discharges Employer, its officers, directors, employees, agents, shareholders, and affiliates from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses, of every kind and nature, whether known or unknown, suspected or unsuspected, contingent or fixed, that Employee ever had or now have against Employer, arising out of or relating to Employee's employment with or separation from Employer, including, but not limited to, any claim of wrongful discharge, discrimination, harassment, retaliation, defamation, invasion of privacy, infliction of emotional distress, violation of public policy, or breach of any express or implied contract.

This release includes all claims arising under any federal, state, or local law, statute, or ordinance, such as the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act; Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; Sections 1981 through 1988 of Title 42 of the United States Code; the Americans with Disabilities Act; the Family and Medical Leave Act; the Fair Labor Standards Act; the Employee Retirement Income Security Act; the Sarbanes-Oxley Act; the Genetic Information Nondiscrimination Act; the National Labor Relations Act; the Worker Adjustment and Retraining Notification Act; and any other federal, state, or local law governing the employment relationship or prohibiting employment discrimination, or any law governing the payment of wages or benefits.



This release does not apply to any rights or claims Employee may have under workers' compensation; claims for unemployment benefits; claims for vested benefits under any employee benefit or pension plan; rights or claims that cannot be waived by law, including rights Employee may have to file a charge with or participate in any investigation or proceeding conducted by the Equal Employment Opportunity Commission ("EEOC") or any other administrative agency; or rights or claims arising after Employee executes this Agreement.



4. Non-Disparagement

Employee agrees not to disparage Employer or its officers, directors, employees, shareholders, or affiliates, and Employer agrees that its officers and directors shall not disparage Employee. This provision shall not be violated by truthful statements in response to legal process or required governmental testimony or filings.



5. Non-Admission of Liability

This Agreement does not constitute an admission by Employer of any liability, wrongdoing, or violation of any law, rule, or regulation.



6. Confidentiality

Employee agrees to keep the terms of this Agreement confidential and not to disclose them to any person other than Employee's immediate family, attorneys, and financial or tax advisors, except as required by law, or with the prior written consent of Employer.



7. Return of Employer Property

Employee confirms that Employee has returned all property of Employer in Employee's possession or control, including, but not limited to, keys, access cards, identification badges, computers, mobile devices, equipment, files, documents, and data.



8. Governing Law and Jurisdiction

This Agreement shall be governed by and construed in accordance with the laws of the United States and the [State], without regard to conflicts of laws principles. Any action or proceeding relating to this Agreement shall be brought in a state or federal court having jurisdiction in the [State], and both Parties hereby irrevocably consent to the jurisdiction of such courts.



9. Effective Date

This Agreement shall become effective eight (8) days after Employee executes it, provided it has not been revoked by Employee during the seven (7) day period following Employee's execution of the Agreement (the "Revocation Period"). To revoke the Agreement, Employee must deliver written notice of revocation to Employer's authorized representative within the Revocation Period. Employee acknowledges that Employee was advised in writing to consult with an attorney before signing this Agreement, was given sufficient time within which to do so, and has knowingly and voluntarily entered into this Agreement.



IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above.

EMPLOYER: EMPLOYEE:
Harmony Industries Inc. [Employee's Full Name]

By: ___________________________ ____________________________
[Employer's Authorized [Employee's Signature]
Representative]
Title: ____________________________

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Sections of a Severance Agreement


In this Severance Agreement, you will see the following sections:

  1. Termination
  2. Severance Benefits
  3. Release of Claims
  4. Non-Disparagement
  5. Non-Admission of Liability
  6. Confidentiality
  7. Return of Employer Property
  8. Governing Law and Jurisdiction
  9. Effective Date


Summary of the sections:

  1. Termination : This section states the date when the employee's employment with the company will end.

  2. Severance Benefits : This section outlines the severance pay and benefits continuation the employee will receive after their employment ends. The severance pay will be a lump sum, and the benefits continuation will last for a specified number of months or until the employee finds new employment with health insurance benefits.

  3. Release of Claims : The employee agrees to release the employer from any claims or legal actions related to their employment or termination. However, this release does not apply to certain rights or claims that cannot be waived by law.

  4. Non-Disparagement : Both the employee and the employer agree not to make negative or harmful statements about each other. This does not apply to truthful statements made in response to legal processes or required governmental testimony or filings.

  5. Non-Admission of Liability : This section clarifies that the agreement does not mean the employer admits to any liability, wrongdoing, or violation of any law, rule, or regulation.

  6. Confidentiality : The employee agrees to keep the terms of the agreement confidential and not to disclose them to anyone except their immediate family, attorneys, and financial or tax advisors, unless required by law or with the employer's written consent.

  7. Return of Employer Property : The employee confirms that they have returned all property belonging to the employer, such as keys, access cards, identification badges, computers, mobile devices, equipment, files, documents, and data.

  8. Governing Law and Jurisdiction : This section states that the agreement will be governed by the laws of the United States and the specified state, and any legal actions related to the agreement will be brought in a state or federal court in that state.

  9. Effective Date : The agreement becomes effective eight days after the employee signs it, as long as they do not revoke it within the seven-day revocation period. The employee acknowledges that they were advised to consult with an attorney before signing the agreement and that they have entered into it knowingly and voluntarily.

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