An employment separation contract is a contract between an employee and his or her organization to relieve the employee of all duties and entitlements from an effective date. The following is a sample employment separation contract.
Sample Employment separation contract:
Employment Separation contract
Through this contract, the employee, Jan Marshall, hereby releases and discharges GVK International, the employer, its management, and supervisory team and other employees of all charges, claims, and causes of every kind which employee has, ever had, or may have in the future relating in any matter to employee’s employment with the employer up to and including the date this agreement has been signed by all the parties.
Terms of the mutual separation contract
- The employee agrees not to start any lawsuit arising from any alleged unlawful conduct relating to his employment with the employer.
- The employer agrees to honour the employee’s request to resign effective from 10th Aug 2009.
- It is understood and agreed to by both the parties that this employment separation contract does not alter the vacation, retirement, health benefit coverage, or other benefits that may apply to which employee is otherwise entitled following this separation.
- The employer agrees to pay to the employee $10,000 subject to appropriate and required tax withholding.
The employer expects employees to give a two weeks’ notice when resigning and desires to return the same courtesy to the employee. So the employer has to pay compensation equivalent to two weeks work in addition to the severance pay of $10,000 mentioned above.
Acknowledgement of the parties towards the agreement
Signature of the employee: Jan Marshall
Signature of the organization: GVK International