Separation Agreements from the Employer’s Perspective

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

(1)  A release and waiver by the employee of all claims against the employer;

(2)  The withdrawal of all pending claims, charges or lawsuits against the employer by the employee;

(3)  An agreement for the employee to not sue or bring any claims against the employer;

(4)  A confidentiality provision requiring the employee to not disclose the terms or fact of the separation agreement;

(5)  An affirmation of the employee’s obligation to not disclose confidential or proprietary company information;

(6)  A non-disparagement clause, in which the employee agrees to not make any disparaging statements against the company;

(7)  A clause setting out the employer’s remedies in the event the employee breaches the separation agreement, such as the recovery of the employer’s attorneys’ fees and litigation costs from the employee in the event of litigation; and

(8)  An agreement that the employee will not seek reemployment with the employer.