Severance agreements

A severance agreement is a legal contract between an employer and an employee who is leaving a job, usually due to layoffs or mutual agreement. This document outlines the terms of the separation, including any financial compensation, benefits continuation, and conditions, such as confidentiality or non-disclosure clauses. It aims to provide a smooth transition for the employee while protecting the employer’s interests. Both parties typically sign to acknowledge their understanding and acceptance of the terms, which can help prevent future disputes.