Severance Agreement Template
This Severance Agreement (this “Agreement” or this “Severance Agreement), is entered into and made effective as of (MM.DD.YYYY) (the “Effective Date”), by and between [Employee.FirstName][Employee.LastName] (“Employee”) and [Employer.Company] (“Employer”).
WHEREAS, Employer employed Employee under an agreement of employment dated May 1; and
WHEREAS, Employer and Employee hereby agree to terminate the employer-employee relationship effective as of May 30 (the “Severance Date”); and
WHEREAS, Employer and Employee would like to settle any and all actual or potential differences and disputes between them related to such employer-employee relationship;
NOW, THEREFORE, in consideration of the foregoing, and of the mutual covenants, commitments and agreements contained herein, the receipt and sufficiency of which is hereby acknowledged, Employer and Employee each acknowledge and voluntarily agree as follows:
1. Effective as of the Severance Date, the Employee’s employment by the Employer and the Employer’s employment of the Employment shall terminate.
2. The Employer is under no obligation to pay any sum or provide any benefit as a result of such termination, and Employee’s payment of the severance benefits described in this Section 2 below will only be made by Employer following Employee’s execution of this Severance Agreement.
Employer agrees to pay Employee a severance benefit in the amount of ($ Amount) solely in consideration of Employee’s promises and covenants made in this Severance Agreement.
3. In accordance with Employer’s policies, Employer will continue to provide insurance coverage to Employee under Employer’s health, vision and dental plans, provided Employee subscribes to such plans, until (MM.DD.YYYY).
4. Employer shall have no obligation to pay, and Employee understands that Employee is not entitled to, any compensation other than as expressly stated in Section 2 of this Severance Agreement.
5. Employee agrees not to disparage Employer, nor its affiliates, subsidiaries, officers, directors, shareholders, employees, agents, products and services, in any way, whether verbally or in written form, publicly or non-publicly, to any third parties, to include any Employer employees.