# Separation agreement template

Source: https://contracko.com/contract-templates/separation-agreement

# Separation agreement template

A legally binding contract between employers and departing employees defining severance compensation, benefits continuation, final paycheck, accrued vacation payout, non-disparagement clauses, release of claims, confidentiality obligations, return of company property, and post-employment restrictions.

## Frequently Asked Questions

- **Q:** Is severance pay required by law?
  **A:** In most jurisdictions, severance pay is not required by law unless it was previously agreed upon in an employment contract or company policy.

- **Q:** What is a release of claims in a separation agreement?
  **A:** A release of claims is a provision where the employee agrees not to sue the employer for employment-related issues in exchange for severance. It typically covers discrimination, wrongful termination, and wage claims.

- **Q:** Can I negotiate the terms of a separation agreement?
  **A:** Yes, separation agreements are negotiable. Employees can negotiate severance amount, benefits continuation, reference letters, and other terms. It's advisable to have an attorney review before signing.

- **Q:** How long do I have to consider a separation agreement?
  **A:** Federal law requires employers to give employees at least 21 days to review separation agreements (40 days for group terminations) and 7 days to revoke after signing if the employee is over 40 years old.

## Related Templates

### [Employment contract template](https://contracko.com/contract-templates/employment-contract)

### [Employee non-disclosure agreement template](https://contracko.com/contract-templates/employee-nda)

### [Termination of contract letter template](https://contracko.com/contract-templates/termination-letter)

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