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: Accurate classification mitigates risks of tax liabilities, benefit claims, penalties, and audits associated with misclassification.
Negotiation strategy
If you're the Company:
Ensure the classification aligns with the intended role and complies with relevant legal standards. Review the criteria for classification, such as control over work, financial arrangements, and relationship duration.
If you're the Employee:
Confirm that the classification accurately reflects the working relationship to avoid potential legal and financial repercussions. Ensure compliance with IRS guidelines and relevant labor laws.
Essential elements
1
Control Over Work
Defines who controls work.
2
Financial Arrangements
Outlines payment terms.
3
Relationship Duration
Specifies contract length.
Action framework
ACCEPT
Propose edits if the classification criteria are unclear or incomplete.
EDIT
Reject if the clause misclassifies the worker, leading to potential legal issues.
ADD
Add language to clarify classification and ensure compliance with applicable laws.
PRO TIP
Regularly review worker classifications to ensure ongoing compliance with changing laws and regulations.
Example clauses
FAVORABLE
Preferred Clause
"The parties agree that [Name] is engaged as an independent contractor and not as an employee. [Name] shall have control over the manner and means of performing the services, subject to the specifications set forth in this agreement."
NEUTRAL
Fallback Clause
"The parties acknowledge that [Name] is classified as an independent contractor, and this classification is consistent with the level of control and independence required by applicable law."
UNFAVORABLE
Misclassification Risk
"The parties agree that [Name] is an employee, but the terms suggest independent contractor status, leading to potential misclassification issues."
Fallbacks
High-Risk Projects
In high-risk projects, ensure the classification reflects the level of control and independence required to mitigate liability.
Short-Term Engagements
For short-term engagements, emphasize the temporary nature and specific deliverables to support independent contractor status.
Jurisdiction-Specific Requirements
Consult with local legal experts to ensure compliance with jurisdiction-specific worker classification laws, which may impose stricter criteria.
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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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DocJuris is not a law firm or a substitute for an attorney or law firm. We cannot provide any kind of advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options,selection of forms or strategies.