Separation agreements help companies and employees avoid disputes and achieve an amicable separation of their affairs at the end of the employment relationship. Some of the most common and important provisions are discussed below.

Severance Pay
One of the chief provisions of any separation agreement is severance pay. Without it, the employee has little incentive to sign the separation agreement. The amount of severance depends on many factors such as industry practice, the executive's compensation at the time of separation, how long the executive worked for the company, whether the executive or the company have any potential claims, and other provisions of the separation agreement. READ MORE