Employment Termination Agreement Template

How to Write an Employment Termination Agreement?

1. An Employment Termination Agreement should begin with the date the termination is taking place, the name of the employer and employee, and a statement that the employment relationship has come to an end.
2. After that should be a section detailing the agreements made between the employee and employer following the termination. This should include an agreement for the final date of employment by both the employee and the employer. The section should also include any consideration or compensation for the employee (for example severance pay, extended medical pay, or other financial benefits).
3. A statement covering the release of claims should also be included, and this must be in accordance with state law. This will release the employer from any potential legal action taken against the now-former employee (such as wrongful termination or unpaid wages). Any final wages, including vacation, personal or bonus time must be paid out in order to meet the release of claims. You should also include a statement that this agreement is in accordance with the state the place of work is located and that this agreement is a binding agreement between the employee and employer.
4. To ensure both sides act in good faith to the above agreements, a section detailing the severability of provisions should follow. This allows for the employee or employer to waive the entire agreement if any of the above-mentioned agreements are violated or found to be illegal. For example, if an employee is terminated for illegal reasons or does not receive final payment for work performed, they may then consider the agreement null and void and take legal action against the employer.
5. In addition to the severability of provisions, the Employment Termination Agreement should also include a statement that no part of the agreement may be altered, amended, or terminated except in writing by both parties once the agreement has been signed.
6. There should be a final signature section listing the employer, employee, and at least one additional witness to the termination agreement.

Related Forms and Templates:

• Employee Warning Notice;
• Employment Contract Termination Letter;
• Compensation Agreement.