Termination Date
Specify the exact MM/DD/YYYY effective date, any paid notice period, and whether termination is voluntary, involuntary, or a mutual separation.
A clear Employee Termination Contract reduces legal risk, documents agreed obligations, and sets expectations for final pay and benefits. It can include releases that limit future claims and provide certainty for payroll and HR processing.
Multiple stakeholders are usually involved in preparing or approving an Employee Termination Contract.
Ensure each signer understands their role: HR handles execution and retention, legal handles wording, and managers handle operational handoff.
Specify the exact MM/DD/YYYY effective date, any paid notice period, and whether termination is voluntary, involuntary, or a mutual separation.
Detail final salary, accrued vacation or PTO payout, last pay date, and any pro rata bonuses or commissions owed at termination.
State severance amount, payment schedule, tax treatment, and conditioning events such as a signed release of claims.
Describe COBRA or employer-provided benefits continuation, employer contributions, and employee election deadlines where applicable.
Include specific release language, the scope of waived claims, any carve-outs (e.g., vested stock), and mutuality if applicable.
Cover confidentiality, return of property, non-solicit or non-compete (if used), and notice requirements for future communications.
| Field | Configuration |
|---|---|
| Signature Order | Employee signs then employer representative signs |
| Authentication | Email link with optional SMS code for higher assurance |
| Conditional Fields | Show severance only if checkbox for severance is selected |
| Retention Setting | Automatically save signed PDF to secure HR folder |
Choose a platform that provides secure eSignature, audit trails, and integration with HR systems.
Confirm the chosen solution supports required compliance frameworks, secure storage, and simple distribution to payroll and benefits teams for timely processing.
State-specific timing for issuing final wages and accrued PTO.
Provide initial COBRA election notice within required time frames.
Include final wages in next payroll and relevant tax reporting.
Retain form I-9 per federal retention rules.
Specify any deadline for employee to accept severance or release terms.
Employer gives termination notice or mutual separation agreement to employee.
Employment ends and final pay obligations are triggered.
Employee receives benefit continuation options such as COBRA.
Clock begins for records retention and legal hold considerations.
| signNow | DocuSign | Adobe Sign | PandaDoc | HelloSign | |
|---|---|---|---|---|---|
| Starting Price | $8/user/mo | $15/user/mo | $14/user/mo | $19/user/mo | $15/user/mo |
| Free Trial | 7-day trial | Varies by plan | Varies by plan | Varies by plan | Varies by plan |
| Bulk Send | Yes | Varies by plan | Varies by plan | Varies by plan | Varies by plan |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
A HR-led separation for a sales director with severance offered
A negotiated exit for a valued employee with transition support