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: Strong confidentiality terms safeguard trade secrets and competitive intelligence, reducing the risk of data leaks or misuse.
Negotiation strategy
If you're the Company:
Ensure the confidentiality clause includes specific definitions of confidential information, exceptions, and a reasonable duration. Emphasize the importance of return or destruction of materials post-termination.
If you're the Employee:
Negotiate for clear exceptions to confidentiality obligations, such as publicly available information. Ensure the duration is not excessively long and aligns with industry standards.
Essential elements
1
Definition of Confidential Information
Clearly defines what is confidential.
2
Duration of Obligations
Specifies how long obligations last.
3
Return or Destruction
Obligations for handling materials post-termination.
Action framework
ACCEPT
Propose edits if the duration is unreasonable or exceptions are unclear.
EDIT
Reject if the clause lacks essential protections or is overly restrictive.
ADD
Add if missing to protect sensitive information.
PRO TIP
Always ensure the confidentiality clause aligns with your company's policy and legal standards.
Example clauses
FAVORABLE
Preferred Confidentiality Clause
"The Contractor shall maintain the confidentiality of all proprietary information disclosed during the term of this agreement and for a period of [X years] thereafter. Exceptions include information that is publicly available or independently developed. Upon termination, all confidential materials must be returned or destroyed."
NEUTRAL
Fallback Confidentiality Clause
"Confidential information shall be protected during the term of this agreement and for [X years] post-termination. Exceptions apply to publicly known information. All materials must be returned or destroyed upon request."
UNFAVORABLE
Weak Confidentiality Clause
"The Contractor agrees to keep information confidential without specifying duration or exceptions."
Fallbacks
High-Risk Projects
In high-risk projects, confidentiality obligations may need to be more stringent, with longer durations and fewer exceptions to protect sensitive data.
Short-Term Engagements
For short-term engagements, confidentiality obligations might be limited to the duration of the project with a brief post-termination period.
Publicly Available Information
When dealing with information that is largely public, the focus should be on protecting only truly proprietary data, with clear exceptions outlined.
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WEEK 2
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WEEK 3
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