Parties
Identify the employer and employee by full legal name, business entity type if applicable, and include contact addresses. Clearly state the capacity in which corporate signatories act to avoid authority disputes.
Use this agreement to limit organizational risk, document mutually agreed separation terms, and record employee acknowledgment of releases and waivers. It clarifies consideration, timelines, and scope of waived claims, aiding dispute prevention and providing evidence for enforceability under ESIGN and state contract law.
Typical users include HR teams, managers handling separations, employee relations specialists, and outside counsel advising on release terms.
Use by authorized HR personnel ensures consistent process, while legal review reduces enforceability risk across jurisdictions.
Oversees preparation and distribution of the release, documents the consideration offered, coordinates legal review, and ensures executed copies and audit trails are retained per company retention policies and regulatory requirements.
Signs and acknowledges waiver terms, confirms receipt of consideration, and should understand scope of claims being released. Advised to review with counsel before signing; mismatched names or missing dates can affect enforceability and tax reporting.
Identify the employer and employee by full legal name, business entity type if applicable, and include contact addresses. Clearly state the capacity in which corporate signatories act to avoid authority disputes.
Specify the precise consideration provided in exchange for the release—payment amounts, continuation of benefits, or other tangible items. Tie payment timing and tax treatment to reduce later disagreement or tax reporting issues.
List categories of claims waived, covering federal, state, and local statutory and common law claims where legally permissible. Use clear language and avoid ambiguous catch-all phrasing.
If confidentiality or non-disparagement is included, define scope, duration, and permitted disclosures clearly. Note carve-outs for whistleblowing under law and for legally compelled disclosures to preserve enforceability.
Address tax treatment of payments, whether they are severance, settlement, or compensation. Indicate responsibility for 1099 or W-2 reporting and explicitly identify any backup withholding triggers.
Require dated signatures from all parties, include printed names and titles for corporate signers, and specify whether electronic signatures, notarization, or witness attestation are required to meet state law or employer policy.
| Field | Configuration |
|---|---|
| Signer Authentication | Use email link by default; add SMS or KBA for higher assurance |
| Signature Fields | Place signature, date, and initials where needed |
| Document Retention | Retain executed PDF and audit trail indefinitely per policy |
| Notifications | Send copies to HR, legal, and payroll automatically |
Use platforms that support secure e-signing, audit trails, and optional strong authentication to protect enforceability.
No set deadline; supply release when requested by payer or employee.
Report taxable settlement payments on 1099-NEC or W-2 by Jan 31.
Retain personnel records per I-9 rules: 3 years post-hire or 1 year post-termination.
Tie payment schedule to execution date to avoid disputes over consideration.
Consider state limitations periods when drafting releases to encompass relevant claims.
| 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 | Yes, 7-day trial | Varies | Varies | Varies | Varies |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |