Separation and Release of Claims Agreement (Short-Form)

by Practical Law Labor & Employment

A Standard Document that serves as a short-form separation agreement, also referred to as a severance agreement, designed for use by employers when offering severance pay or other benefits to departing at-will employees in exchange for a release of claims. This Standard Document is crafted as a letter agreement, making it suitable for most rank-and-file employees, and is based on federal law, although state and local laws may impose additional requirements. It includes essential terms such as the separation date, final paycheck details, severance benefits, and a general release of all claims, including those under Title VII, ADA, EPA, and other employment-related statutes. The document emphasizes the importance of returning company property and maintaining confidentiality, while also acknowledging the employee's rights to communicate with government agencies like the EEOC and NLRB. Compared to a longer-form separation agreement, this Standard Document is succinct, aiming to minimize negotiation and provide clarity without extraneous language. It is jurisdiction-neutral and can be customized to comply with specific state laws, ensuring comprehensive protection for employers while facilitating a smooth transition for employees. For a more formal separation agreement, see Standard Document, Separation and Release of Claims Agreement (Long-Form). This Standard Document has integrated notes with important explanations and drafting tips.