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: Appropriately tailored restrictions shield key assets and relationships while reducing the risk of invalidation as overbroad restraints.
Negotiation strategy
If you're the Company:
Ensure the clause is reasonable and enforceable by aligning geographic, temporal, and scope restrictions with business needs and legal standards. Tailor the clause to the specific role and industry standards.
If you're the Employee:
Negotiate for reasonable limitations in terms of geographic scope, duration, and restricted activities. Ensure the clause does not unfairly limit future employment opportunities.
Essential elements
1
Geographic Scope
Area where restrictions apply.
2
Duration
Time period of restrictions.
3
Restricted Activities
Specific activities prohibited.
Action framework
ACCEPT
Propose edits if the geographic scope is too broad or the duration exceeds industry norms.
EDIT
Reject if the clause is overly restrictive without justification.
ADD
Add if missing, ensuring it aligns with business interests.
PRO TIP
Always consider state-specific enforceability issues when drafting non-compete clauses.
Example clauses
FAVORABLE
Preferred Non-Compete Clause
"The Employee agrees that for a period of [12 months] following the termination of this Agreement, they will not, within [specified geographic area], engage in any business activities that are competitive with the Company’s business."
NEUTRAL
Standard Non-Compete Clause
"The Employee agrees not to compete with the Company for a reasonable period post-termination."
UNFAVORABLE
Overbroad Non-Compete Clause
"The Employee shall not engage in any business activities in any capacity for a period of [5 years] post-termination."
Fallbacks
High-Risk Projects
In high-risk projects, non-compete clauses may need to be more stringent to protect sensitive information and client relationships.
Jurisdiction-Specific Limitations
In jurisdictions with strict limitations, consider alternative protections like confidentiality agreements.
Short-Term Contracts
For short-term contracts, ensure non-compete clauses are proportionate to the contract length and scope.
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WEEK 1
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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
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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
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