What is a letter of severance?

What is a severance agreement? A severance agreement is a legal document signed by an employer and an employee upon termination that details the rights and responsibilities of each party. The contract contains any benefits the employee will be entitled to, such as severance pay or insurance plans.

What is a severance letter?

A severance agreement is a contract that an employer may ask an employee to sign when they are terminated from a job. Severance pay is often offered in exchange for an employee's release of their claims against the employer.

What is an example of a severance package?

Common severance packages typically include 1-2 weeks of pay for each year of service, continued health insurance coverage, and payout of accrued vacation time. Here's what most employees receive: Severance pay: 1-2 weeks per year of service (average 3-6 months total) Health benefits: COBRA continuation coverage.

What is an example of a termination letter with severance?

Dear Jane Doe, I regret to inform you that your employment with Global Enterprises is terminated effective June 1, 2023. Four weeks of severance pay is being offered in exchange for signing the attached release of claims and returning the signed release to human resources no later than May 31, 2023.

What is the purpose of severance?

A severance package can forestall lawsuits. By encouraging exiting workers to sign these releases, severance packages can be highly instrumental in reducing litigation against the company. This is important protection, considering the fact that employee lawsuits are quite common today.

What is the meaning of severance pay?

Severance pay is often granted to employees upon termination of employment. It is usually based on length of employment for which an employee is eligible upon termination. There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay.

How do you write a free termination letter?

Dear [EMPLOYEE], This letter is to inform you that your position at [COMPANY] has been terminated as of [DATE]. The reason for termination is as follows: [PROVIDE REASONS FOR TERMINATION]. Your last day of work will be [DATE], and you will receive your last paycheck no later than [DATE].

Electronic Signature
Features
Employment Contract Templates
Get Your Severance Letter Template Free

Get Your Severance Letter Template Free and Simplify Your Document Signing

airSlate SignNow offers an easy-to-use solution for creating and eSigning documents. Save time and money while ensuring your severance letters are professionally crafted.

Sign documents online

Learn more

Collect payments & signatures

Learn more

Add wet ink signature online

Learn more

Sign documents on iPhone or iPad

Learn more

Award-winning eSignature solution

Move your business forward with the airSlate SignNow eSignature solution

Create your signature in seconds on any desktop computer or mobile device, even while offline. Type, draw, or upload an image of your signature.

Deliver a seamless eSignature experience from any website, CRM, or custom app — anywhere and anytime.

Organize multiple documents in groups and automatically route them for recipients in a role-based order.

Collect signatures faster by sharing your documents with multiple recipients via a link — no need to add recipient email addresses.

Create unlimited templates of your most-used documents. Make your templates easy to complete by adding customizable fillable fields.

Create teams within airSlate SignNow to securely collaborate on documents and templates. Send the approved version to every signer.

See airSlate SignNow eSignatures in action

Create secure and intuitive eSignature workflows on any device, track the status of documents right in your account, build online fillable forms – all within a single solution.

Try airSlate SignNow with a sample document

Complete a sample document online. Experience airSlate SignNow's intuitive interface and easy-to-use tools
in action. Open a sample document to add a signature, date, text, upload attachments, and test other useful functionality.

sample

Checkboxes and radio buttons

Try a sample document

sample

Request an attachment

Try a sample document

sample

Set up data validation

Try a sample document

Understanding the Severance Letter

A severance letter serves as a formal notification to an employee regarding their termination and the accompanying benefits. This document outlines the terms of the severance package, including any financial compensation, continuation of benefits, and the effective date of termination. It is essential for both the employer and employee to have a clear understanding of these terms to ensure a smooth transition.

Employers should ensure that the letter is clear, concise, and free of legal jargon. This helps prevent misunderstandings and provides the employee with a straightforward reference for their severance agreement.

Key Components of a Severance Letter Template

A well-structured severance letter template includes several critical components:

Employee Information: Name, address, and position of the employee.
Company Information: Name and address of the company, along with the name of the person issuing the letter.
Termination Date: The official date when the employee's termination becomes effective.
Severance Pay Details: Information about the severance package, including payment amount and schedule.
Benefits Information: Details on health insurance continuation or other benefits that may be available.
Return of Company Property: Instructions regarding the return of any company-owned items.
Contact Information: A point of contact for any questions or further clarification.

How to Use a Severance Letter Template

Using a severance letter template can streamline the process of drafting a termination letter. To effectively utilize the template:

Fill in Employee Details: Input the employee's name, position, and any specific details relevant to their situation.
Customize the Severance Package: Adjust the severance pay and benefits information according to company policy and the employee's contract.
Review Legal Compliance: Ensure that the letter complies with local and federal employment laws to avoid potential legal issues.
Proofread: Check for clarity and accuracy before sending the letter to the employee.

Benefits of Using a Severance Letter Template

Utilizing a severance letter template offers several advantages:

Time Efficiency: Templates save time by providing a structured format that can be quickly customized.
Consistency: Using a standard template helps maintain consistency across all severance letters issued by the company.
Legal Protection: A well-crafted template can help protect the company from potential legal disputes by clearly outlining the terms of the severance agreement.

Common Mistakes to Avoid

When drafting a severance letter, it is important to avoid common pitfalls:

Vagueness: Avoid ambiguous language that could lead to misunderstandings about the severance terms.
Omitting Key Information: Ensure that all critical components are included to provide a complete overview of the severance package.
Neglecting Legal Review: Always have the letter reviewed by legal counsel to ensure compliance with applicable laws.

Finalizing and Sending the Severance Letter

Once the severance letter is complete, follow these steps to finalize and send it:

Obtain Necessary Approvals: Ensure that the letter is approved by the appropriate management personnel before distribution.
Deliver the Letter: Send the letter to the employee in a professional manner, whether by email or physical delivery, ensuring they receive it in a timely fashion.
Document the Process: Keep a copy of the letter and any correspondence related to the termination for company records.

airSlate SignNow solutions for better efficiency

Keep contracts protected

Enhance your document security and keep contracts safe from unauthorized access with dual-factor authentication options. Ask your recipients to prove their identity before opening a contract to severance letter template free.

Stay mobile while eSigning

Install the airSlate SignNow app on your iOS or Android device and close deals from anywhere, 24/7. Work with forms and contracts even offline and severance letter template free later when your internet connection is restored.

Integrate eSignatures into your business apps

Incorporate airSlate SignNow into your business applications to quickly severance letter template free without switching between windows and tabs. Benefit from airSlate SignNow integrations to save time and effort while eSigning forms in just a few clicks.

Generate fillable forms with smart fields

Update any document with fillable fields, make them required or optional, or add conditions for them to appear. Make sure signers complete your form correctly by assigning roles to fields.

Close deals and get paid promptly

Collect documents from clients and partners in minutes instead of weeks. Ask your signers to severance letter template free and include a charge request field to your sample to automatically collect payments during the contract signing.

Collect signatures

24x

faster

Reduce costs by

$30

per document

Save up to

40h

per employee / month

Our user reviews speak for themselves

Kodi-Marie Evans

Director of NetSuite Operations at Xerox

airSlate SignNow provides us with the flexibility needed to get the right signatures on the right documents, in the right formats, based on our integration with NetSuite.

Check 5000+ reviews

Samantha Jo

Enterprise Client Partner at Yelp

airSlate SignNow has made life easier for me. It has been huge to have the ability to sign contracts on-the-go! It is now less stressful to get things done efficiently and promptly.

Check 5000+ reviews

Megan Bond

Digital marketing management at Electrolux

This software has added to our business value. I have got rid of the repetitive tasks. I am capable of creating the mobile native web forms. Now I can easily make payment contracts through a fair channel and their management is very easy.

Check 5000+ reviews

be ready to get more

Why choose airSlate SignNow

Free 7-day trial. Choose the plan you need and try it risk-free.
Honest pricing for full-featured plans. airSlate SignNow offers subscription plans with no overages or hidden fees at renewal.
Enterprise-grade security. airSlate SignNow helps you comply with global security standards.

Start free trial

Free Severance Letter Template

Drafting a severance letter can be an easy task with the appropriate resources. Utilizing a complimentary severance letter template from airSlate SignNow can optimize your document management and signing workflow, helping you keep a professional image while saving time.

How to utilize the free severance letter template

Open your web browser and go to the airSlate SignNow site.
Sign up for a free trial account or log in if you already possess one.
Choose the document you want to sign or send for signatures.
If you intend to reuse this document, convert it into a reusable template.
Access your document and make necessary adjustments: add fillable fields or input specific information.
Sign the document and allocate signature fields for the recipients.
Click 'Continue' to set up and send an eSignature invitation.

airSlate SignNow provides a robust solution for businesses aiming to handle their documents effectively. With an extensive feature set that offers excellent return on investment, it is built to be user-friendly and adaptable, making it perfect for small to medium-sized enterprises. Furthermore, their clear pricing guarantees no hidden charges, and their dedicated support is accessible 24/7 for all paid subscriptions.

Begin using airSlate SignNow today to streamline your document signing process and improve your business operations!

How it works

Upload a document

Edit & sign it from anywhere

Save your changes and share

airSlate SignNow features that users love

Speed up your paper-based processes with an easy-to-use eSignature solution.

Edit PDFs
online

Generate templates of your most used documents for signing and completion.

Learn more

Create a signing link

Share a document via a link without the need to add recipient emails.

Learn more

Assign roles to signers

Organize complex signing workflows by adding multiple signers and assigning roles.

Learn more

Create a document template

Create teams to collaborate on documents and templates in real time.

Learn more

Add Signature fields

Get accurate signatures exactly where you need them using signature fields.

Learn more

Archive documents in bulk

Save time by archiving multiple documents at once.

Learn more

Connect airSlate SignNow to your apps

Check out airSlate SignNow integrations

Data accuracy, security, and compliance

airSlate SignNow is committed to protecting your sensitive information by complying with global industry-specific

Learn more about security

be ready to get more

Get legally-binding signatures now!

Start your free trial

FAQs

Here is a list of the most common customer questions. If you can’t find an answer to your question, please don’t hesitate to reach out to us.

Need help? Contact support

What active users are saying — severance letter template free

Get access to airSlate SignNow’s reviews, our customers’ advice, and their stories. Hear from real users and what they say about features for generating and signing docs.

Great Program

5

Agency

What do you like best?

Convenient interface, easy to modify and cheap. Everything works as expected, and we have had zero issues using the program. We upload our documents, edit them in their program, then create a link and have our customers sign it. And if there are any issues, or something needs additional editing we just go back into the program and quickly fix the issue. From start to finish, we can upload and edit a doc, while emailing a sign here link in under 10 minutes. We would not be able to operate without this program.

Read full review

Great tool at a great price

5

Administrator in Marketing and Advertising

What do you like best?

I love that I can have unlimited templates. My projects with clients are not one-size-fits-all, and it makes it so easy to be able to just select a different template versus how I was doing it before with another signature tool.

Read full review

Simple to Use - Works Amazingly

5

Jeremy C

What do you like best?

The form builder is easy to use and easy to modify the template. The drag and drop field editor makes it easy to work with as well. We use airSlate SignNow though email, iPad App, and mobile App for people to sign waivers and contracts through it.

Read full review