Document background
This Severance Contract template is designed for use in the United States when an employment relationship is being terminated and the employer wishes to provide severance benefits in exchange for certain agreements from the employee. The document complies with federal laws including the Age Discrimination in Employment Act (ADEA), Older Workers Benefit Protection Act (OWBPA), and state-specific requirements. It is typically used in situations involving voluntary separation, reduction in force, or negotiated departures. The agreement includes essential provisions for severance payment, benefits continuation, release of claims, confidentiality obligations, and other post-employment responsibilities. Special considerations are incorporated for employees over 40 years old, ensuring compliance with federal age discrimination protections and mandatory review periods.
