Free Severance Agreement Template

This Severance Agreement (this "Agreement") is entered into and effective as of ________________ between ________________ (the "Employer") and ________________ (the "Employee").

1. PARTIES AND SEPARATION. This Agreement is made between ________________ and ________________. The Employee's employment with the Employer ends effective ________________. The Employer shall pay the Employee all wages and accrued, unused benefits earned through that date regardless of whether the Employee signs this Agreement, as required by law.

2. SEVERANCE PAYMENT. In exchange for the Employee's promises in this Agreement, and as consideration the Employee is not otherwise entitled to, the Employer shall pay the Employee severance as follows: ________________. This severance is paid ________________, and is subject to lawful withholdings and deductions.

3. CONTINUATION OF BENEFITS. The Employer shall provide the following regarding continued benefits: ________________. The Employee's right to continue group health coverage is otherwise governed by applicable law and the terms of the plans.

4. RELEASE OF CLAIMS. In exchange for the severance described above, the Employee releases and waives all claims against the Employer and its owners, officers, employees, and agents, whether known or unknown, arising from the employment or its ending, up to the date the Employee signs this Agreement, to the fullest extent permitted by law. This release does not waive any claim that cannot be waived by law, including the right to file a charge with a government agency, and does not release the Employer's obligations under this Agreement.

5. RETURN OF PROPERTY. On or before the separation date, the Employee shall return to the Employer all property, documents, equipment, keys, and confidential materials belonging to the Employer, and shall keep no copies except as permitted in writing.

6. CONFIDENTIALITY. The Employee shall keep confidential the Employer's nonpublic information and the terms of this Agreement, except as required by law or as needed to enforce this Agreement or to consult a spouse, attorney, or tax advisor who agrees to keep the information confidential.

7. NON-DISPARAGEMENT. The Employee and the Employer agree not to make false or disparaging statements about the other that are intended to harm the other's reputation. This provision does not prevent either party from giving truthful testimony or information required by law or a government agency.

8. NO ADMISSION OF WRONGDOING. This Agreement is not an admission of any wrongdoing or liability by either party, and neither party admits any violation of any law or policy by entering into it.

9. REVIEW AND REVOCATION. The Employee has ________________ to review and consider this Agreement before signing and is advised to consult an attorney before doing so. After signing, the Employee may revoke this Agreement within ________________, and the Agreement does not take effect or become payable until any revocation period ends without a revocation.

10. GOVERNING LAW AND ENTIRE AGREEMENT. This Agreement is governed by the laws of the State of ________________. If any provision is found unenforceable, the remaining provisions stay in full effect. This Agreement is the entire agreement between the parties regarding the Employee's separation and may be changed only in writing signed by both parties.

This is a general template and not legal advice. Severance and release agreements are governed by state and federal law, and specific rules apply to releasing age discrimination claims, required review and revocation periods, and valid consideration, so review your state's requirements or have an attorney review this Agreement before use.