Free severance agreement and release template (Word)

SEVERANCE AGREEMENT AND RELEASE

This Severance Agreement and Release (the "Agreement") is between [Employer name] (the "Company") and [Employee name] (the "Employee").

1. Separation

The Employee's employment ends on [Separation date] (the "Separation Date"). Whether or not the Employee signs this Agreement, the Company will pay the Employee's final wages and any accrued, unused vacation the law or Company policy requires, and the Employee keeps any vested retirement benefits.

2. Severance

If the Employee signs this Agreement and does not revoke it, the Company will pay the Employee [Severance amount], less required withholdings, in a lump sum within [Payment days] days after this Agreement becomes effectivein [Installment count] equal instalments on the Company's regular paydays, starting after this Agreement becomes effective. If the Employee elects continuation health coverage, the Company will also pay the premiums for [Cobra months] months. The Employee would not otherwise be entitled to these payments.

3. Release of claims

In exchange, the Employee releases the Company and its owners, officers, employees and agents from all claims arising from the Employee's employment or its ending, up to the date the Employee signs, including claims under federal, state and local employment and discrimination laws, including the Age Discrimination in Employment Act.

The Employee does not release: claims that cannot be released by law, such as for unemployment or workers' compensation benefits; vested benefits; rights under this Agreement; or claims that arise after the Employee signs.

4. Protected rights

Nothing in this Agreement stops the Employee from filing a charge with, communicating with or taking part in an investigation by a government agency, such as the Equal Employment Opportunity Commission, from reporting possible violations of law, from testifying truthfully, or from discussing wages or working conditions as the law allows. The Employee waives only the right to recover money from the Company for released claims, except where the law forbids that waiver.

5. Time to consider and revoke

The Company advises the Employee in writing to consult a lawyer before signing. The Employee has [Consideration days] days to consider this Agreement and may revoke it within 7 days after signing by written notice to [Revocation contact]. This Agreement becomes effective on the eighth day after the Employee signs, if not revoked. The Employee has [Consideration days] days to consider this Agreement, and it becomes effective when the Employee signs it.

6. Other terms

The Employee will return all Company property by [Property return date]. The Employee will not make false or disparaging statements about the Company, and the Company will instruct [Non disparagement contacts] not to make false or disparaging statements about the Employee, subject to the protected rights above. In response to reference requests, the Company will confirm only the Employee's job title and dates of employment.

This Agreement is not an admission of wrongdoing by either party. It is governed by the laws of [Governing law] and is the entire agreement on its subject.

Company: ____________________________ By: [Company signatory] Date: ______________

Employee: ____________________________ [Employee name] Date: ______________