Category: Employment
Mutual Separation Agreement
Mutual termination of employment with optional severance and release of claims.
When to use
Use when an employee is leaving on mutually agreed terms — with or without severance. Includes a general release of claims in exchange for the consideration.
Template body
MUTUAL SEPARATION AGREEMENT AND RELEASE
This Mutual Separation Agreement and Release (this "Agreement") is entered into as of {{effective_date}} by and between {{company_name}} (the "Company") and {{employee_name}} (the "Employee").
1. SEPARATION
The Employee's employment with the Company ends effective {{separation_date}} (the "Separation Date"). Both Parties acknowledge that the separation is mutual and voluntary.
2. FINAL PAY
The Company will pay the Employee all earned but unpaid wages through the Separation Date, plus any accrued but unused paid time off, in accordance with applicable law, on or before the next regular payday.
3. SEVERANCE
In consideration of the promises in this Agreement, the Company will pay the Employee severance in the amount of {{severance_amount}}, less applicable withholdings, payable {{severance_payment_terms}}. The Employee acknowledges that this severance is not otherwise owed and is provided solely in exchange for this Agreement.
4. BENEFITS CONTINUATION
The Employee's group health benefits will end on {{benefits_end_date}}. The Employee may elect to continue coverage under COBRA, in accordance with applicable law, at the Employee's expense.
5. RETURN OF PROPERTY
On or before the Separation Date, the Employee shall return all Company property, including documents, equipment, credentials, and credit cards.
6. GENERAL RELEASE OF CLAIMS
In exchange for the consideration in this Agreement, the Employee releases the Company and its affiliates, officers, directors, and employees from any and all claims arising out of or related to the Employee's employment or its termination, including claims under Title VII, the ADA, the ADEA, state and local employment laws, and any common-law claims. The Employee does not release any claims that cannot be waived by law, any rights to vested benefits, or any claims arising after the date of this Agreement.
7. NO ADMISSION
Nothing in this Agreement is an admission of wrongdoing by either Party.
8. CONFIDENTIALITY AND NON-DISPARAGEMENT
The Employee agrees to keep the terms of this Agreement confidential, except for disclosure to immediate family, legal and tax advisors, or as required by law. The Parties agree not to make disparaging statements about each other.
9. CONTINUING OBLIGATIONS
The Employee's obligations under any prior confidentiality, IP assignment, and non-solicitation agreements with the Company remain in effect.
10. ADEA REVIEW PERIOD
If the Employee is age 40 or older, the Employee has twenty-one (21) days from receipt of this Agreement to review it and seven (7) days after signing to revoke acceptance. This Agreement does not become effective until the revocation period expires.
11. GOVERNING LAW
This Agreement is governed by the laws of {{governing_law_state}}.
12. ENTIRE AGREEMENT
This Agreement is the entire understanding between the Parties regarding the Employee's separation. Any amendment must be in writing and signed by both Parties.
BY SIGNING BELOW, THE EMPLOYEE ACKNOWLEDGES HAVING READ THIS AGREEMENT, UNDERSTOOD ITS TERMS, AND HAD THE OPPORTUNITY TO CONSULT COUNSEL.
COMPANY EMPLOYEE
{{company_name}} {{employee_name}}
Name: ________________________ Signature: ___________________
Title: _______________________ Date: ________________________
Date: ________________________
Customizable fields (8)
{{company_name}} — Company name (text){{employee_name}} — Employee name (text){{effective_date}} — Effective date (date){{separation_date}} — Separation date (date){{severance_amount}} — Severance amount (text){{severance_payment_terms}} — Severance payment terms (text){{benefits_end_date}} — Benefits end date (date){{governing_law_state}} — Governing law (state) (text)