Parties
Identify the employer legal entity and the employee by full legal name and title to avoid identity disputes.
A clear SLD Agreement reduces misunderstandings about pay, benefits, and obligations at separation or during short leaves, protects legal rights, and creates an auditable record of mutual commitments. Properly drafted, it helps manage risk, preserves confidentiality, and documents any severance or release terms.
Employers, HR teams, and outside counsel usually prepare these agreements; employees, their representatives, and authorized company signatories must review and sign them.
Document execution often requires recorded consent and can be completed electronically where permitted by law and company policy.
HR director or authorized officer who certifies the agreement reflects company policy, signs on behalf of the employer, and ensures implementation of payment or benefit changes.
The employee affected by the SLD Agreement (or their authorized agent) who must sign to indicate voluntary acceptance and acknowledgment of the terms described.
Identify the employer legal entity and the employee by full legal name and title to avoid identity disputes.
State the exact start date using MM/DD/YYYY to set the timing of obligations and any deadlines tied to the agreement.
Detail any severance pay, accrued leave payouts, or benefit continuation amounts and payment schedule.
Describe any limited-duty expectations, timeline for return-to-work, and medical or documentation requirements if applicable.
Spell out release language, scope of claims waived, and confidentiality or non-disparagement provisions, with any carve-outs.
Provide signature blocks for all parties with printed names, titles, and dates; note whether witness or notary is required.
| Field | Configuration |
|---|---|
| Routing Order | Sequential: HR → Employee → Legal |
| Authentication | Email link with optional SMS code for higher assurance |
| Required Fields | Signatures, dates, initials on key clauses |
| Record Retention | Store signed PDF and audit trail in secure records system |
Ensure your chosen platform supports secure audit trails, compliant storage, and required authentication methods before e-signing an employment agreement.
Verify platform compliance with ESIGN/UETA and any industry-specific rules (for example HIPAA for health-related employee records) and retain the audit trail with the signed file.
Enter the exact MM/DD/YYYY when obligations begin
Meet COBRA or plan notice requirements when applicable
Report any taxable payments on Forms W-2 or 1099 as required
Retain I-9 per 8 CFR §274a.2 requirements
Effective date can trigger limitation periods for claims
Terms agreed between parties and final draft produced.
HR and legal sign-off secured before sending to employee.
Employee signs and returns the agreement to HR or platform.
Executed copies stored; payroll and benefits teams notified.
| Document Type | SLD Agreement | Severance Agreement |
|---|---|---|
| Primary Purpose | temporary terms | comprehensive separation terms |
| Typical Length | short, targeted | longer, includes releases |
| Release Included | sometimes | usually |
| Use Case | short leaves or limited duties | full termination/severance |
| 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 free trial | Varies by plan | Varies by plan | Varies by plan | Varies by plan |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
A mid-sized employer used an SLD Agreement to document a temporary medical leave arrangement with defined pay continuation and return conditions.
A company and an employee negotiated a short separation with limited release language to avoid litigation.