5
PLAYBOOK TEMPLATES
Severance & Employment Separation Agreement
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.
Termination and Notice
Negotiation strategy
Ensure the termination clause aligns with company policy and includes industry-standard notice periods. Consider including severance terms to mitigate potential disputes.
Negotiate for clear notice periods and severance terms to ensure fair treatment upon termination. Seek to include cure rights where possible.
Essential elements
1
Notice Period
Time before termination takes effect.
2
Severance Payment
Compensation upon termination.
3
Cure Rights
Opportunity to remedy before termination.
Action framework
ACCEPT
Propose edits if the notice period is too short or severance terms are missing.
EDIT
Reject if the clause exposes the company to undue risk or lacks clarity.
ADD
Add language if termination provisions are absent or incomplete.
PRO TIP
Always ensure termination clauses comply with local jurisdictional laws to avoid legal complications.
Real-world examples
FAVORABLE
Preferred Termination Clause
"Either party may terminate this agreement with 30 days' written notice. In the event of termination without cause, the terminating party shall provide a severance payment equivalent to one month's compensation."
NEUTRAL
Standard Termination Clause
"Termination may occur with 14 days' notice. Severance is not applicable unless otherwise agreed."
UNFAVORABLE
Inadequate Termination Clause
"Termination can occur immediately without notice or severance."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure termination clauses include extended notice periods and detailed severance terms to protect both parties.
International Agreements
For international agreements, consider jurisdiction-specific requirements to ensure compliance with local laws.
Short-Term Contracts
In short-term contracts, focus on flexible termination terms with minimal notice requirements.
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WEEK 3
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WEEK 4
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