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Severance Agreement Template

HR and Employment Counsel Resource

Document a negotiated separation with a severance agreement template for HR, people operations, and employment counsel. Collect the parties, last day, severance consideration, release of claims, return of property, benefits and COBRA references, confidentiality, and—when employees are 40 or older—OWBPA disclosure and consideration/revocation periods. This is not legal advice and is not a non-compete form. Confirm current employment, tax, and waiver rules with counsel before presenting an agreement.

Severance Agreement Template form template preview

Key Benefits

State last day, pay, and form of consideration
Attach or describe the claims release
List property, access, and confidentiality items
Reference benefits, COBRA, and unused PTO treatment
Flag OWBPA timing when age-40+ employees are included
Keep a signed copy with the personnel file

Common Use Cases

Individual separations with a release of claimsReduction-in-force packages with group disclosuresExecutive separations with custom considerationHR working with employment counsel on a formAgreements that include confidentiality or non-disparagementOlder-worker exits requiring OWBPA language

Frequently Asked Questions

What makes a severance agreement enforceable?
Generally the employee must receive consideration beyond what they are already owed (for example, extra pay or benefits) in exchange for a release. State wage, unemployment, and waiver laws vary. Counsel should confirm the release scope and any non-waivable rights.
What is OWBPA and when does it apply?
The Older Workers Benefit Protection Act sets extra rules when a release includes age-discrimination claims for workers 40 and older—plain language, consideration and revocation periods, and group-termination disclosures when applicable. Confirm current federal requirements; this template is not a substitute for counsel-drafted OWBPA exhibits.
Should severance mention COBRA?
Often the agreement states that group health continuation is offered under a separate COBRA (or state) notice and is not extra consideration unless the company is subsidizing premiums. Do not treat this template as a COBRA notice.
Does this include a non-compete?
No. This batch does not include a non-compete. Restrictive covenants are jurisdiction-sensitive and should be drafted separately if your counsel advises they are lawful and necessary.

Checklist

Parties

Employee legal name, employer entity, and last day of employment
Required

Position, employee ID, and mailing address for notices.

Consideration

Severance pay amount, schedule, and any benefit subsidies
Required

What is above wages already earned; tax withholding method.

Release

Release-of-claims language and excluded or non-waivable rights
Required

Counsel-drafted exhibit; do not DIY a statutory waiver.

OWBPA

OWBPA consideration/revocation dates and group list if required

Required when age claims are released for employees 40+; confirm current rules.

Property

Company property, access credentials, and expense-card return list
Required

Devices, keys, badges, files, and reimbursement cutoff.

Benefits

PTO payout policy, benefits end date, and COBRA reference
Required

Point to the separate COBRA packet; do not replace it here.

Covenants

Confidentiality, return of information, and any permitted disclosures

Whistleblower and other legally protected disclosures should remain permitted.

Execution

Signature blocks, dates, and counsel or witness lines if used
Required

Retain the fully signed PDF with the personnel file.