"Employment Termination Agreement Template"

What Is an Employment Termination Agreement?

An Employment Termination Agreement is a form used when it is decided that an employee will be terminated or let go from their position by their place of work. The agreement lays out in detail the rules and restrictions both parties will adhere to as part of the end of the Employment Agreement.

Alternate Names:

  • Employee Termination Agreement;
  • Employment Termination Contract.

You can download an Employment Termination Agreement below or create your own using our online form builder.

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How to Write an Employment Termination Agreement?

  1. An Employment Termination Agreement should begin with the date the termination is taking place, the name of the employer and employee, and a statement that the employment relationship has come to an end.
  2. After that should be a section detailing the agreements made between the employee and employer following the termination. This should include an agreement for the final date of employment by both the employee and the employer. The section should also include any consideration or compensation for the employee (for example severance pay, extended medical pay, or other financial benefits).
  3. A statement covering the release of claims should also be included, and this must be in accordance with state law. This will release the employer from any potential legal action taken against the now-former employee (such as wrongful termination or unpaid wages). Any final wages, including vacation, personal or bonus time must be paid out in order to meet the release of claims. You should also include a statement that this agreement is in accordance with the state the place of work is located and that this agreement is a binding agreement between the employee and employer.
  4. To ensure both sides act in good faith to the above agreements, a section detailing the severability of provisions should follow. This allows for the employee or employer to waive the entire agreement if any of the above-mentioned agreements are violated or found to be illegal. For example, if an employee is terminated for illegal reasons or does not receive final payment for work performed, they may then consider the agreement null and void and take legal action against the employer.
  5. In addition to the severability of provisions, the Employment Termination Agreement should also include a statement that no part of the agreement may be altered, amended, or terminated except in writing by both parties once the agreement has been signed.
  6. There should be a final signature section listing the employer, employee, and at least one additional witness to the termination agreement.

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Employment Termination Agreement
This ​ E mployment Termination Agreement (hereinafter referred to as the
“Agreement”) is entered into as of _________________________ by and between
_________________________, with a mailing address of ______________________
__________________________________ (hereinafter referred to as the “Employer”)
and _________________________, with a mailing address of ___________________
_________________________________ (hereinafter referred to as the “Employee”),
collectively referred to as the “Parties,” both of whom agree to be bound by this
Agreement.
The Employee and the Employer had an employment agreement from
_________________________ to _________________________.
Start Date
Termination Date
In that agreement, the Parties agreed that they would resolve any employment
dispute as follows:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
Method of dispute resolution (e.g., arbitration, choice of law, etc.)
The Employee hereby agrees and obligates themself to the following:
1. The Employee will not engage in any competition with the Employer for the period
of _________________________________, which includes employment with another
Duration of the non-compete agreement
company in the same or similar business as the Employer, the establishment of a new
company in the same or similar business as the Employer, or any contractual
arrangement under which the Employee consults, advises, or assists another company
in the same or similar business.
2. The Employee will not engage in conduct or make statements relating to their
employment or this Agreement that can be construed as critical or derogatory of the
Employer or its employees, agents, partners, shareholders, officers, directors, and
affiliated companies.
3. The Employee releases and discharges all claims, complaints, charges, disputes, and
demands against the Employer and its employees, agents, partners, shareholders,
© ​
T EMPLATEROLLER.COM
Employment Termination Agreement
This ​ E mployment Termination Agreement (hereinafter referred to as the
“Agreement”) is entered into as of _________________________ by and between
_________________________, with a mailing address of ______________________
__________________________________ (hereinafter referred to as the “Employer”)
and _________________________, with a mailing address of ___________________
_________________________________ (hereinafter referred to as the “Employee”),
collectively referred to as the “Parties,” both of whom agree to be bound by this
Agreement.
The Employee and the Employer had an employment agreement from
_________________________ to _________________________.
Start Date
Termination Date
In that agreement, the Parties agreed that they would resolve any employment
dispute as follows:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
Method of dispute resolution (e.g., arbitration, choice of law, etc.)
The Employee hereby agrees and obligates themself to the following:
1. The Employee will not engage in any competition with the Employer for the period
of _________________________________, which includes employment with another
Duration of the non-compete agreement
company in the same or similar business as the Employer, the establishment of a new
company in the same or similar business as the Employer, or any contractual
arrangement under which the Employee consults, advises, or assists another company
in the same or similar business.
2. The Employee will not engage in conduct or make statements relating to their
employment or this Agreement that can be construed as critical or derogatory of the
Employer or its employees, agents, partners, shareholders, officers, directors, and
affiliated companies.
3. The Employee releases and discharges all claims, complaints, charges, disputes, and
demands against the Employer and its employees, agents, partners, shareholders,
© ​
T EMPLATEROLLER.COM
officers, directors, and affiliated companies, except for claims, complaints, charges,
disputes, or demands that could arise from a breach of this Agreement, such as claims
for back pay, front pay, damages, and fees such as attorneys' fees, that could arise
from federal or state employment laws or from any conduct by the Employer.
The Employee has had the opportunity to consult with their attorney and is aware of
their legal rights, but knowingly and voluntarily waives those rights to the extent
possible under the law.
4. The Employee will not share, divulge or disclose any information about the
Employer or its employees, agents, partners, shareholders, officers, directors, and
affiliated companies that the Employee knows is confidential or is considered a trade
secret, trademark, service mark, trade name, patent, or copyright, including
information or a product invented or developed by the Employee during their
employment with the Employer.
5. The Employee has surrendered to the Employer paper and electronic copies of all
letters, memoranda, documents, records, and other material that is the property of the
Employer. The Employee has also surrendered to the Employer all other tangible
property of the Employer, including keys, products, charge cards, telephones, pagers,
computers and other equipment, and vehicles.
6. The Employee will not share, divulge, or disclose the provisions of this Agreement
except to the Employee's family, agents, representatives, or advisors, or to the extent
required by law.
The Employer and the Employee further agree that in consideration for the above
agreements and promises, the Employer will pay the Employee as follows:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Terms of severance payment (i.e., lump-sum amount, payment schedule, etc.)
Such severance payment constitutes the entire obligation of the Employer to the
Employee.
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T EMPLATEROLLER.COM
The Employer and Employee further agree that in the event of any breach of this
Agreement or default hereunder, the injured party has the right to pursue any legal
action available to enjoin the breaching party from further injurious conduct and/or to
recover from the breaching party damages for such breach or default.
The Parties agree that this Agreement shall be governed by the laws of
______________________​ .
State
The Parties agree to the terms and conditions set forth above as demonstrated by their
signatures as follows:
EMPLOYER
EMPLOYEE
Name: _____________________
Name: _____________________
Signed: ____________________
Signed: ____________________
Date: ______________________
Date: ______________________
© ​
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