The Employer and Employee may be referred to individually as “Party” and collectively as “Parties”.
This Employment Separation Agreement (“Agreement”), is made valid upon signature by both Parties (the “Effective date”).
1.1 Considering their mutual covenants, and for other good and valuable consideration in this Agreement, of which the receipt and sufficiency are hereby acknowledged, the Parties further agree to the provisions below:
1.2 Nature of Separation: The Parties, who previously entered into an employment agreement on [Insert Date], now hereby agree to discontinue the Employee’s employment relationship with the Employer as [Insert Designation], effective on [Insert “Separation Date”] (hereinafter referred to as the "Separation Date") in an amicable manner according to the terms and conditions provided in this Agreement.
2. Terms and Conditions:
2.1 Severance Pay: The Employer agrees to make a single payment to the Employee in the amount of [Insert Amount & currency] as a severance payment. This payment shall be subject to appropriate taxes and other payroll deduction required by law.
2.2 Separation Period: The Employee shall be given [Insert days] business days after the Separation Date to prepare for the transition of work to the new employee who will take over the duties and responsibilities.
2.3 Return of Property: The Employee shall return all of the Employer’s properties within [Insert Date] business days following the Separation Date. The said properties include but are not limited to any files, documents, handbooks, manuals, computer printouts, credit cards, vehicles, equipment, tools, phones, radios, other electronic data, and any other form of property the Employer owns.
2.4 Release of Claims: The Employee hereby releases and forever discharges the Employer, including its assign, representatives, affiliates, successors, and current employees from any claim, demand, causes of action, obligations, damages, liabilities, and charges, which may have arisen during an employment period.
2.5 Breach: The Employee acknowledges that any breach of obligations herein is considered a material breach. Thus, the Employer shall be entitled to appropriate injunctive relief and to recover reasonable cost and legal fees incurred if the Agreement is threatened by breaching.
2.6 Non-Compete: The Parties agree that the Employee, during the employment period, shall not engage in any activity that directly or indirectly competes with the business of the Employer. Furthermore, the Employee shall be given [Insert time period] before applying to a company of similar nature as the Employer.
2.7 Entire Agreement: This Agreement, along with the attached documents, shall constitute the entire Agreement between the Parties. This Agreement shall also overrule any previous agreement, either verbal or written.