Separation Agreements: Drafting and Negotiation Tips (Pro-Employer)


Summary

This practice note addresses initial preparations for drafting a separation agreement and common terms that employers ordinarily should include, or at least consider including, in separation agreements. When terminating an employee’s employment, the employer often seeks to have the departing employee execute a separation agreement. In doing so, the employer seeks to obtain a comprehensive and defensible release of all real or perceived claims that the employee may legally waive in exchange for payments and/or benefits to which the employee is not otherwise entitled, that is, the “consideration” for the agreement. As the employer’s attorney, you must ensure that the separation agreement will be comprehensive, valid, and enforceable so that the employer can successfully avoid litigation and other risks stemming from the termination.