An employer may use this form to build or reach a severance or termination agreement with an outgoing employee when the employer is either contractually bound to provide severance or it determines that providing severance is in its best interests. Common scenarios in which employers elect to provide severance are when they desire a (mostly) clean break with an outgoing employee, they desire to maintain good relations with the outgoing employee or when the employer desires some protection from the outgoing employee against risks associated with litigation, competition or security.
A severance or termination agreement is a very effective tool for an employer to use to make a mostly clean break with outgoing employees. However, there are important restrictions on the type of consideration employers can ask for as part of severance or termination agreements. This How to will help employers walk through the process of negotiating and drafting such an agreement and can be useful in protecting the company and ensuring the agreement is enforceable in a court of law.
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