General Release Employment Termination for the United States

General Release Employment Termination Template for United States

A General Release Employment Termination agreement is a legally binding document used in the United States to formalize the end of an employment relationship and release the employer from potential future claims. This document outlines the terms of separation, including severance pay, benefits continuation, and mutual releases of claims. It must comply with federal laws such as ADEA and OWBPA, as well as applicable state employment laws. The agreement typically includes provisions for confidentiality, non-disparagement, and return of company property.

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What is a General Release Employment Termination?

The General Release Employment Termination agreement is utilized when an employer and employee are ending their working relationship and wish to establish clear terms for the separation while protecting both parties' interests. This document is particularly important in the United States where employment litigation is common. It serves as a comprehensive settlement of all potential claims arising from the employment relationship, typically in exchange for severance benefits. The agreement must carefully consider both federal and state requirements, particularly when dealing with age discrimination (ADEA) compliance, group terminations, or specific state law requirements. It's crucial that the document be carefully drafted to ensure enforceability while providing adequate protection for both parties.

What sections should be included in a General Release Employment Termination?

1. Parties: Identification of employer and employee with full legal names and addresses

2. Background: Brief statement of employment relationship and decision to terminate

3. Definitions: Key terms used throughout the agreement including 'Effective Date', 'Released Parties', 'Claims'

4. Termination Date: Clear statement of when employment ends

5. Consideration: Details of severance payment or other benefits being provided

6. General Release: Comprehensive release of all claims against employer

7. Acknowledgments: Employee's confirmation of understanding and voluntary acceptance

8. Governing Law: Jurisdiction governing the agreement

What sections are optional to include in a General Release Employment Termination?

1. Non-Compete: Restrictions on future employment, used when protecting legitimate business interests and permitted by state law

2. Non-Solicitation: Restrictions on soliciting employees or customers, used when protecting customer relationships and workforce

3. Confidentiality: Ongoing obligations regarding confidential information, used when employee had access to sensitive information

4. Return of Property: Process for returning company property, used when employee possessed company equipment or materials

5. References: Agreement on how future employment references will be handled, used when parties want to establish clear protocol for references

What schedules should be included in a General Release Employment Termination?

1. Schedule A - Severance Calculation: Detailed breakdown of severance payment calculation

2. Schedule B - Benefits Continuation: Details of any continuing benefits and their duration

3. Schedule C - Company Property Checklist: List of company property to be returned

4. Appendix 1 - ADEA Disclosure: Required disclosure for employees over 40 (if applicable)

5. Appendix 2 - State-Specific Notices: Any required state-specific disclosures or notices

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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ADEA Compliance: Age Discrimination in Employment Act requirements including 21-day consideration period, 7-day revocation period, and clear language about waiving age discrimination claims for employees 40 and older

OWBPA Requirements: Older Workers Benefit Protection Act specifications including 45-day consideration period for group terminations and statistical disclosure requirements

Title VII Considerations: Title VII of the Civil Rights Act addressing discrimination claims based on race, color, religion, sex, and national origin

ADA Compliance: Americans with Disabilities Act considerations regarding disability discrimination claims

FLSA Provisions: Fair Labor Standards Act requirements regarding wage and hour claims, noting certain FLSA rights cannot be waived

NLRA Considerations: National Labor Relations Act provisions regarding protected concerted activity and union-related rights

State Law Compliance: State-specific requirements including discrimination laws, wage and hour laws, release requirements, consideration periods, and non-compete agreement enforceability

Workers Compensation: Considerations regarding the handling of existing or potential workers compensation claims

Unemployment Rights: Address unemployment compensation rights and any impact of the agreement on these rights

ERISA Benefits: Treatment of vested benefits under the Employee Retirement Income Security Act

Future Claims: Provisions regarding the handling of future claims and specific exclusions

Non-disparagement: Provisions preventing either party from making negative statements about the other

Confidentiality: Requirements regarding maintaining confidentiality of the agreement terms and company information

Company Property: Requirements for return of company property including equipment, documents, and intellectual property

Post-Employment References: Terms regarding future employment references and any agreed-upon statements about the termination

Consideration Terms: Specific details about severance payment amounts, timing, and conditions

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What is a General Release Employment Termination?

What sections should be included in a General Release Employment Termination?

What sections are optional to include in a General Release Employment Termination?

What schedules should be included in a General Release Employment Termination?

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Alex Denne

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