A Severance & Employment Separation Agreement formalizes the terms of an employee‚ exit and related payments. This playbook emphasizes release language, confidentiality, and non-disparagement clauses.
Why This Matters: Transparent and well-defined compensation terms minimize disputes over pay, deductions, and benefit entitlements.
Negotiation strategy
If you're the Company:
Ensure the compensation structure aligns with company forecasts and budget constraints. Clearly define payment schedules and performance metrics to avoid future disputes.
If you're the Employee:
Negotiate for clear and achievable performance-based incentives. Ensure that payment schedules and base salary meet industry standards and personal expectations.
Essential elements
1
Base Salary
Annual salary paid monthly.
2
Performance Bonus
Incentives based on performance.
3
Payment Schedule
Timely and regular payments.
Action framework
ACCEPT
Propose edits if payment terms are ambiguous or misaligned with industry standards.
EDIT
Reject if the clause lacks clear compensation terms or violates labor laws.
ADD
Add language to specify performance metrics and payment schedules if absent.
PRO TIP
Always ensure performance metrics are specific, measurable, and aligned with strategic goals.
Example clauses
FAVORABLE
Preferred Compensation Clause
"The Employee shall receive a base salary of $X per annum, payable in equal monthly installments. In addition, the Employee is eligible for a performance-based bonus of up to Y% of the base salary, contingent upon meeting specified performance targets."
NEUTRAL
Fallback Compensation Clause
"The Contractor shall be compensated at a rate of $X per hour, with payments made bi-weekly. Performance bonuses may be awarded at the discretion of the Company based on project outcomes."
UNFAVORABLE
Unclear Compensation Terms
"The Employee's compensation will be determined at the end of the fiscal year, with no specific payment schedule or performance criteria outlined."
Fallbacks
High-Risk Projects
In high-risk projects, ensure compensation includes risk premiums and clear criteria for performance bonuses to motivate and retain talent.
Start-Up Environment
In start-ups, compensation may include equity options. Ensure these are clearly defined and align with company growth projections.
Remote Work Arrangements
For remote work, ensure compensation accounts for home office expenses and includes clear communication on performance expectations.
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WEEK 1
CLM Readiness and Design
Our CX team works with you to understand your contracting challenges, prioritize key workflows, and identify the biggest impact areas. We build a tailored implementation plan that fits your needs.
WEEK 2
Install Module
We connect DocJuris to your contract repositories, set up admin and user accounts, and ensure your environment is ready for success.
WEEK 3
Deliver & Test
Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
Launch
We support you in rolling out DocJuris to a pilot group or your full organization—with launch materials, training, and hands-on support to drive adoption from day one.
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