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Severance Employment Contract

Free Severance Agreement Forms

Create a compliant severance agreement and release of claims for departing employees. Our attorney-drafted templates include OWBPA-compliant ADEA waivers, EEOC-approved release language, the 21/45-day consideration period, 7-day revocation rights, non-disparagement carve-outs required under the Speak Out Act, and §409A-compliant payment timing.

Ready in 5–10 min
Free to create and preview. Download as PDF or Word.
Actual severance amount and payment terms
Separate earned pay from additional consideration
Review periods and limited release options
PDF + Word formats ready
Portrait of Suna Gol

Written by

Suna Gol
Portrait of Anderson Hill

Fact-checked by

Anderson Hill
Portrait of Jonathan Alfonso

Legally reviewed by

Jonathan Alfonso

Severance Agreement

Separate already-owed wages, expenses and benefits from additional severance consideration. A separation agreement may provide payments without a release; releasing claims is an explicit separate choice.

The limited-release workflow identifies actual parties, existing claims and consideration. It excludes unknown/future claims, already-owed wages, vested rights, protected agency activity and nonwaivable claims. It adds no automatic California unknown-claim waiver, gag clause or no-rehire restriction.

Actual terms and records

Identify legal parties, notice contacts and every actual work location, including remote work. Determine any collective agreement, public-sector or professional rules. A governing-law selection cannot erase mandatory protections where work occurs.

Write the agreed schedule, duties, term, renewal, pay frequency, compensation calculation, benefits, expenses and ending obligations. If an obligation is not agreed, say so rather than inserting a typical amount or deadline. Already-earned compensation remains payable on applicable deadlines.

Classification and entitlements

Overtime status is not preselected. Employees need the actual federal and state tests; a title or salary is insufficient. Covered non-exempt workers retain minimum-wage and overtime rights, including applicable state daily overtime and regular-rate rules. Record all compensable time.

Contractor status depends on actual facts under each applicable wage, tax and state test, not merely invoices or a Form 1099. The form does not transfer the organization’s own misclassification liability to the worker. Part-time and temporary labels do not create a blanket benefit exclusion.

Confidentiality, work product and restrictions

Limited confidentiality preserves lawful wage/working-condition discussions, organizing, agency cooperation, whistleblower reporting and protected awards. The trade-secret immunity notice is included when confidentiality is selected.

A work-product assignment requires a defined scope, identified owner and prior-material exclusions. Statutorily protected personal inventions remain excluded. A generic “all inventions” clause or work-for-hire label is not a substitute for the actual legal requirements.

The employment form creates no automatic noncompete, nonsolicit, no-hire restriction, class waiver or arbitration obligation. Any separately reviewed agreement must stand on its own eligibility, scope, consideration, notice and consent. Massachusetts and Illinois, for example, impose specific notice/counsel requirements; other jurisdictions and healthcare roles have different restrictions.

Age-discrimination releases and delivery

ADEA claims are preserved unless expressly selected for the limited release. The wizard requires actual age, group-program status and whether a charge/action is already filed. Unconfirmed facts cannot produce signature-ready output.

For an ordinary ADEA waiver, the procedure includes written advice to consult an attorney, at least 21 days to consider an individual offer or 45 days for a group/class program, and at least seven days after signing to revoke. The agreement as a whole remains ineffective during the revocation period. A filed-charge/court settlement follows a different procedure and is routed to separate review.

For a group program, supply the complete decisional-unit/class/group description, eligibility and time limits, job titles and ages of eligible/selected people, and ages of noneligible/nonselected people in the same classification/unit. Record actual delivery at the beginning of the review period. The form does not pretend an exhibit was attached or delivered.

Review and revocation rules do not independently establish an enforceable waiver. Understandable language, voluntariness, actual additional consideration, the exact claims and all other applicable requirements still matter.

Review before signing

Record the actual requirements, reviewer/date, documents and delivery steps. Resolve classification, scope and missing terms. Choosing “reviewed” records the preparer’s answer; it is not independent verification, legal approval or a guarantee for all states.

The builder keeps unresolved review unsigned. Read the generated agreement and all separate documents together. Required notices, benefit documents, approvals and actual execution steps remain necessary; this agreement does not certify they were completed.

Sample and builder

The public sample is an unsigned illustration with placeholders. It is not a completed agreement or recommended compensation package. Enter the actual terms and inspect the resulting PDF or Word document before use.

Prepare severance agreement

Common questions

Official sources