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Home Q&A Forum When to use an employee separation agreement?


Employee Separation Agreement


Asked on Jun 13, 2023

When to use an employee separation agreement?

I am an employer considering letting an employee go and am looking to understand when an employee separation agreement is necessary. I am unsure of the distinction between an employee separation agreement and other termination documents and want to ensure that I am following the proper protocol and protecting my business in the event of legal action.

1 Attorney answer




Answered 365 days ago

Wendy C.

ContractsCounsel verified

Business Lawyer
Licensed in Arizona, Iowa, Texas
Free Consultation

Separation agreement is usually helpful when separating with an employee amicably and includes other terms that you want to ask of the other party and which you will also make promises. In other words, it is a two-way (or mutual) agreement. A termination letter is most likely a one-way communication, a notice that such employee is being terminated. You should talk to your preferred counsel to discuss facts in detail and make a determination which one will be the right approach.

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