Separation Agreement Template for United States

A Separation Agreement is a formal contract between an employer and employee in the Philippines that outlines the terms and conditions of their employment separation. It spells out important details like severance pay, benefits continuation, and any special arrangements agreed upon by both parties when ending their working relationship.

Under Philippine labor laws, this agreement helps protect both sides by clearly documenting their mutual understanding, preventing future disputes, and ensuring compliance with the Labor Code's requirements for lawful termination. Many companies use these agreements, especially during restructuring or when offering voluntary separation packages, to create a smooth and legally sound transition.

Consider using a Separation Agreement when ending an employment relationship in the Philippines needs careful documentation and clear terms. This proves especially valuable during voluntary resignations, redundancies, or when offering early retirement packages to ensure both parties understand their rights and obligations.

Use this agreement to protect your company from future claims, specify confidentiality requirements, detail final compensation packages, and address post-employment obligations. It's particularly important when dealing with senior executives, mass layoffs, or situations involving sensitive company information. The agreement helps maintain professional relationships while ensuring compliance with Philippine Labor Code requirements.

• Employment Separation Agreement: Standard workplace agreement covering basic termination terms, severance, and confidentiality
• Contract Separation Agreement: More detailed version for complex employment situations, including non-compete clauses and intellectual property rights
• Separation And Property Settlement Agreement: Comprehensive agreement addressing both employment termination and division of company assets or benefits
• Marriage Separation Contract: Personal agreement for married couples defining terms of separation
• Legal Separation Contract: Formal document meeting Philippine Family Code requirements for legal separation

• Employers/Companies: Draft and propose Separation Agreements, ensuring compliance with Philippine labor laws and company policies
• Employees: Review, negotiate, and sign these agreements when leaving their positions, often seeking legal advice first
• HR Managers: Coordinate the agreement process, manage documentation, and ensure proper implementation of terms
• Legal Counsel: Review or draft agreements to protect both parties' interests and ensure compliance with local regulations
• Labor Department Officials: May review agreements in dispute cases or during compliance checks
• Union Representatives: Often involved in reviewing and negotiating terms for unionized employees

• Employee Details: Gather complete employment history, position, and current compensation package
• Separation Terms: Document reasons for separation, last working day, and any agreed-upon severance package
• Financial Calculations: Compute final pay, unused leave credits, and other benefits following Philippine Labor Code
• Company Assets: List all company property to be returned, including devices, documents, and access credentials
• Confidentiality Scope: Define specific trade secrets and sensitive information covered by non-disclosure terms
• Legal Requirements: Our platform ensures compliance with Philippine labor laws while generating your agreement
• Review Process: Set up internal review steps and allow time for employee consultation before signing

• Basic Information: Names, positions, and complete details of both employer and employee
• Separation Terms: Clear statement of mutual agreement, effective date, and reason for separation
• Financial Details: Complete breakdown of final pay, benefits, and severance package as per Philippine law
• Release Clause: Mutual release of claims and liabilities between parties
• Confidentiality Terms: Specific obligations regarding company information and trade secrets
• Return of Property: Detailed list of company assets to be returned
• Non-disparagement: Guidelines for maintaining professional communication post-separation
• Governing Law: Clear reference to Philippine Labor Code and applicable regulations
• Signature Block: Space for dated signatures with witness provisions

A Separation Agreement differs significantly from a Business Acquisition Agreement in both purpose and scope, though both involve ending certain business relationships. Let's explore the key differences:

• Primary Purpose: Separation Agreements focus on ending employment relationships and settling employee-employer obligations, while Business Acquisition Agreements deal with company ownership transfers and business asset sales
• Parties Involved: Separation Agreements are between employers and employees, whereas Business Acquisition Agreements involve business owners, buyers, and their respective entities
• Legal Framework: Separation Agreements primarily operate under Philippine Labor Code provisions, while Business Acquisition Agreements fall under corporate and commercial law
• Duration and Effect: Separation Agreements typically have immediate effect with limited ongoing obligations, but Business Acquisition Agreements often include long-term warranties, representations, and post-closing commitments
• Content Focus: Separation Agreements address benefits, confidentiality, and final settlements, while Business Acquisition Agreements cover asset valuation, transfer terms, and business continuity