Employment Severance Agreement

A Severance Agreement details the mutual agreement between an employer and employee in which employee’s relationship with employer is severed. This agreement sets out the specific terms of the agreement including the date of termination, obligations the company agrees to fulfill and any severance bonus employee will receive. It also sets out the specifics regarding continuing insurance coverage and employee’s waiver of any claims against the company. It is imperative that a Severance Agreement is set out in writing rather than by oral representation. A well-written Severance Agreement will prove invaluable in the event there are misunderstandings between the parties regarding the termination of employment. (continued ...)