Severance Package Agreement Template

A Severance Package Agreement is a legally binding contract between an employer and an employee that outlines the terms of compensation, benefits and obligations after employment ends. This agreement protects both parties by specifying severance pay, continuation of benefits like health insurance, confidentiality and release of claims. It also includes non-compete and non-disparagement clauses to safeguard the company’s interests. This agreement protects both the employer and the employee and helps avoid disputes.

Both employers and employees use a Severance Package Agreement to document severance pay, benefits and post-employment obligations, with employees signing to acknowledge the terms.

Once signed, the agreement is usually submitted to the employer's HR or legal department.