Separation Agreement
(Employment)

Summary

This template is a non-jurisdictional separation agreement (sometimes known as a severance agreement) that an Employer may use when it terminates an Employee and seeks to obtain a general release of claims from the Employee. This template includes practical guidance, drafting notes, and alternate and optional clauses. This template has not been tailored for any specific jurisdiction. Use this template alone or customize it for one or more jurisdictions. This separation agreement is intended for private Employers and is drafted to satisfy the requirements under with the Older Workers Benefit Protection Act of 1990 (OWBPA), ensuring that a release of claims constitutes a voluntary and knowing waiver of rights under the Age Discrimination in Employment Act of 1967 (ADEA). Although the ADEA only protects Employees age 40 or over, the template incorporates the OWBPA-compliant Employee review period, revocation period, and other terms as default provisions since many Employers prefer to use a single version of the template for administrative efficiency, and such terms can help bolster the enforceability of a general release if challenged. However, when terminating the employment of younger Employees, you may remove or shorten the review and revocation periods and omit the references to the OWBPA and ADEA. To obtain a valid waiver of ADEA claims when more than one Employee's employment is being terminated, provide the additional OWBPA disclosures required as described in Alternate Section and its drafting note. For more information about OWBPA, see Older Workers Benefit Protection Act (OWBPA): Compliance Tips. For a video discussion on OWBPA, see Older Workers Benefit Protection Act Video. For a video discussing five main separation agreement provision tips for non-executive employees where the employee did not separately raise an employment claim, see Separation Agreement Tips for Non-Executive Employees Video. For additional information on drafting separation agreements, see Separation Agreements: Drafting and Negotiation Tips (Pro-Employer) and Separation Agreements: Key Negotiating Issues (Pro-Employee). For other annotated separation agreements, see Separation Agreement and General Release (Individuals under 40) and Separation Agreement and General Release (Individuals 40 and over). For additional state termination requirements, including special release requirements, see Investigations, Discipline, and Terminations State Practice Notes Chart. For annotated state separation agreement templates, see Investigations, Discipline, and Terminations State Expert Forms Chart. In addition, for state wage and hour termination pay and notice issues, see the Pay Timing, Frequency, Methods, and Deductions and Posting and Notice Requirements columns of Wage and Hour State Practice Notes Chart. For a full listing of key content covering departing employees, see Departing Employees Resource Kit. To compare state and federal laws on restrictive covenants and terminations in employment agreements, see the Employee Benefits & Executive Compensation State Law Comparison Tool. Following are links to some separation agreement precedents filed with the SEC: • Northrup Grumman Corp. (February 5, 2020) • API Group Corp. (September 7, 2021) • Activision Blizzard, Inc. (September 10, 2021) For a full listing of key content covering the provision of severance or separation pay on various terminations of employment, see Severance Benefits Resource Kit.