Separation Agreements from the Employee’s Perspective

From the employee’s perspective, some key provisions of a separation agreement include:

(1)  The payment of the separation, severance, or settlement amount;

(2)  The payment of all outstanding compensation and benefits due;

(3)  A neutral reference clause, in which the employer agrees to only release dates of employment and positions held to prospective employers, and to not release any other information about the employee’s employment or separation of employment;

(4)  A non-disparagement clause, in which the employer agrees to not make any disparaging statements about the employee;

(5)  An agreement from the employer to not oppose any claim by the employee for unemployment insurance benefits;

(6)  A release by the employer of all claims against the employee;

(7)  An agreement by the employer to not sue or bring any claims against the employee; and

(8)  A pre-written, pre-signed positive letter of reference on the employer’s stationary, attached to the separation agreement.