Severance Agreement (US) by OLL
This severance agreement, also called a separation agreement, sets out the terms on which a US employee leaves and releases claims in exchange for severance pay.
It includes the federal age discrimination waiver requirements for employees aged 40 and over, with separate options for an individual exit and a group termination program.
SEVERANCE AGREEMENT AND GENERAL RELEASE
This Severance Agreement and General Release (this "Agreement") is entered into by and between [company legal name], a [company state of incorporation] [company entity type] with its principal place of business at [company business address] (the "Company"), and [employee full legal name] (the "Employee"). The Company and the Employee are each a "Party" and together the "Parties".
Note: This Agreement ends the employment relationship and buys a release of legal claims. The Employee gives up the right to sue over anything that happened during employment, and in exchange receives severance the Employee would not otherwise be owed. That exchange is what makes the release enforceable, so the severance must be something extra, never final wages or accrued vacation the Employee is already owed.
RECITALS
WHEREAS, the Employee has been employed by the Company as [employee job title] since [employee hire date];
WHEREAS, the Employee's employment with the Company ends on [separation date];
WHEREAS, the Company is willing to provide the Employee with severance benefits to which the Employee is not otherwise entitled, in exchange for the Employee's release of claims and the other promises set out below; and
WHEREAS, the Parties wish to resolve their relationship on the terms recorded in this Agreement.
NOW, THEREFORE, in consideration of the mutual promises below, the Parties agree as follows:
1. SEPARATION OF EMPLOYMENT
1.1 The Employee's employment with the Company ends on [separation date] (the "Separation Date"). The Employee's participation in all Company benefit plans ends on the Separation Date, except as required by law or as set out in Section 4.
1.2 As of the Separation Date, the Employee resigns from every office, directorship, and other position the Employee holds with the Company and any of its affiliates, and the Employee will sign any document the Company reasonably requests to record those resignations.
Note: Set the Separation Date before this Agreement is signed. The release below covers claims up to the date the Employee signs, so a signing date later than the Separation Date widens the release slightly in the Company's favor.
2. FINAL WAGES AND ACCRUED TIME OFF
2.1 Whether or not the Employee signs this Agreement, the Company will pay the Employee all wages earned through the Separation Date, together with [accrued unused vacation or pto amount] for accrued and unused vacation or paid time off to the extent required by the Company's policy or applicable law, on [final wage payment date]. The Company will reimburse any outstanding business expenses submitted in accordance with Company policy.
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