Below is a template for a compensation agreement that you can customize for your small business and for the termination situation. This template and the content of this article only provide general information, so we also advise you to consult your lawyer about your specific situation. You can also access this model here as a Word document or here as a PDF file. If the employee is 39 years of age or younger, as a general rule, 5-10 days is enough for someone to take into account and sign the severance agreement. Recommended separation – It is recommended that each former employee be given two (2) weeks of severance pay after the termination of their employment relationship, as long as he or she signs a separation contract. This model for severance agreements is available below for free use on UpCounsel. If you are trying to avoid an illegitimate right of termination, you should ask a licensed staff member to sign this form as soon as you have adapted it. Severance agreements are sometimes written in the form of letters to employees. This is sometimes called termination letter, and it contains all the same details you will find in the standard compensation agreement. You want to make sure that the employee knows when he is current before signing the contract and if he is 40 years of age or older, or 21 days from the date of termination (and he also receives an additional 7 days to change his mind after signing). If you opt for severance pay, it should always be conditional on the employee signing a severance contract, which is discussed in this article.
As long as you do not have an employment contract with your employee, you can include an unblocking of rights or an agreement not to take legal action in your termination contract. This means that, by signing the contract and in exchange for severance pay, the employee is required not to sue you or to assert definitive rights against you in connection with his employment or termination. They could, for example, prohibit the rights to irregular dismissal or discrimination on the basis of the employment relationship. Beyond the legal jargon you can see, our severance agreement dominates, they will want to make sure that you have some important elements in your severance agreement, and we list them below. The contract form on this page allows two parties in an employer-employee relationship to document the dissolution of their relationship. The buttons attached to the image on this page give you access to the PDF, Word or ODT versions of the document displayed.