Prepare a Severance or Termination Agreement Checklist
Author: XpertHR Editorial Team
When to Use
A severance or termination agreement is a great way to make a mostly clean break with outgoing employees, obtain valuable information and protect the business from retribution or unfair competition. An employer may find such agreements to be useful in preventing litigation and maintaining employee morale through difficult times of transition as well.
However, there are important restrictions on the elements of such agreements, deriving from the law and from prosecutorial action by government entities like the Equal Employment Opportunity Commission (EEOC), for example. An employer can use this checklist to prepare and execute a severance or termination agreement. Employers should complete the following steps in sequential order.