Severance Agreement - free legal template for agreements between employers and employees
Updated 17 October 2025
This Severance Agreement template outlines the terms for an employee's termination, including details on severance payment, non-disparagement, liability release, and non-solicitation clauses. It also covers the return of company property and confidentiality obligations. This document aims to formalize the end of an employment relationship with clear terms for both the employer and employee.
SEVERANCE AGREEMENT
This Severance Agreement is entered into and made effective on [agreement date], by and between [employee name] the ("Employee") and [employer name] the ("Employer").
Definitions:
Severance Date: The Severance Date refers to the date of termination of the Employee's employment, which is [termination date].
The Employer and Employee acknowledge and agree to the following terms:
Employment status
The Employee's employment with the Employer shall terminate on [termination date] (the "Severance Date").
Severance
The Employee shall be entitled to a severance payment in the amount of [severance amount] provided the Employee complies with the terms mentioned in this Severance Agreement. This payment will be made to the employee upon the execution of this Agreement.
The Employer has no obligation to pay, and the Employee understands that they are not entitled to any compensation beyond what is expressly stated above.
Non Disparagement
The Employee agrees not to use written or verbal statements to disparage the Employer, nor any individuals, products or services affiliated with the Employer.
Liability Release
The Employee voluntarily releases the Employer and its affiliates from any claims or liabilities the Employee may have against them, known or unknown at the time of this agreement.
Non Solicitation
The Employee agrees that they will not solicit, persuade or otherwise engage the employees of the Employer, either directly or indirectly, to end their employment or accept employment elsewhere for a period of 5 years following the Severance Date.
Return of Company Property
The Employee must return all tangible company property, including proprietary information, to the Employer. This property must be returned on or by the Severance Date. The Employee acknowledges that they cannot disclose any confidential or proprietary information they obtained during their employment with the Employer to any third parties.
Confidentiality
The Employee agrees to maintain the strictest confidentiality regarding the contents, terms, and conditions of this Severance Agreement for a period of 5 years.
No Admission of Liability
The Employee acknowledges that nothing included in the Severance Agreement represents an admission of any breach or misconduct by the Employer.
Entire Agreement
This Severance Agreement forms the entire agreement between the Employer and the Employee and replaces all previous written or verbal negotiations and agreements related to the subject matter. The parties will make no further agreements or arrangements beyond what has been expressly stated in this document.
Governing Law
This Severance Agreement shall be governed by, and construed in accordance with, the laws of [jurisdiction]. Each Party irrevocably agrees that the courts of [JURISDICTION] shall have exclusive jurisdiction to settle any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with this Agreement or its subject matter or formation.
IN WITNESS WHEREOF, the Employee and the Employer have executed this Severance Agreement as of the Effective Date.
By: [signature]
Name:
Date:
By: [signature]
Name:
Date:
About this template
What is this template?
Severance Agreement - free legal template for agreements between employers and employees is a free, ready-to-use Employment template you can open, customize, and download on GitLaw. It gives you a professionally structured starting point, so you never have to draft from a blank page. The wording is plain and modern, organized into clear sections that are easy to read, edit, and adapt to your own situation before you share or sign it.
When should you use it?
Reach for this Employment template whenever you need a reliable agreement quickly and want to be sure the essentials are covered. It suits individuals, freelancers, startups, and established businesses alike. Instead of paying for a document drafted from scratch, you can start here, tailor the details to your arrangement, and have a polished draft ready in minutes. This version is drafted with General in mind, though you should always review the final wording against the laws that apply to you.
What's typically included?
A well-drafted Employment usually sets out the parties involved, the scope of the agreement, and each side's rights and responsibilities. Expect sections covering key terms and definitions, how long the agreement lasts, how it can be ended, and what happens if something goes wrong. This template brings those building blocks together in a sensible order, so you can focus on the specifics rather than worrying about what to include. Open it to read the full document, then sign up to edit, negotiate, and e-sign it directly in GitLaw.