Sample Severance Agreement Including Release of ADA Claims

INTRODUCTION Company hired Employee on (date). Employee resigned his employment on (date). Company and Employee want to part company on friendly terms. The purpose of this Severance Agreement is to resolve any dispute that might arise between Employee and Company. COMPANY'S PROMISES TO EMPLOYEE In return for the promises of Employee, which are stated below, Company promises to do the following: (1) Company shall pay Employee (enter number of month) month(s) salary, the gross amount of which is $ (enter dollar amount). Company shall make the usual deductions for state and federal income taxes, FICA, etc., from this amount. (2) Company shall pay for Employee's continued individual health insurance coverage through (enter date). Company shall do this by making payments on Company's behalf under the COBRA provisions. After (enter date), Employee may continue this coverage at his own expense under the COBRA provisions. EMPLOYEE'S PROMISES TO COMPANY In exchange for the promises of Company, which are stated above, Employee promises to do the following: (1) Employee releases and discharges Company, its parent corporation, subsidiaries, related corporations, employees, directors, and agents from all legal, equitable, or administrative claims that he may have against any of them. Employee agrees that this includes any claims (Initials of the Parties) arising from his employment with, or resignation from, Company. This Agreement specifically includes any discrimination claims arising under the Americans with Disabilities Act and all other claims arising under federal, state, or local statutes, common law, or ordinances. Employee waives any right that he may have to recover in any proceeding which results from a charge or action filed on his behalf by a state or federal administrative agency. (2) Employee agrees that after he signs this Severance Agreement, he will keep its terms and conditions strictly confidential. (3) Employee waives any right he may have to re-employment with Company and agrees not to apply for re-employment. (4) Employee agrees that if he breaks his promise stated above and files a lawsuit based on legal claims he has released, he will pay all costs incurred in defending the claim by any party he has released. This includes reasonable attorney's fees. MISCELLANEOUS TERMS AGREED TO BY THE PARTIES In exchange for the promises made by and to Employee and Company, they mutually agree to the following terms: (1) Either party may enforce this Severance Agreement in court if the other party breaches it. (2) If a court refuses to enforce any part of this Severance Agreement, the remainder of the Severance Agreement will not be affected and will remain in force. (3) Company does not admit violating any state, federal, or local laws by entering into this Severance Agreement. (4) This Severance Agreement contains the entire and only agreement between Company and Employee. They waive (Initials of the Parties) any oral or written promises or assurances which are not contained in this Severance Agreement. EMPLOYEE'S ASSURANCES TO COMPANY This Agreement is a legal document with legal consequences. Company wants to be certain that Employee fully understands the legal effect of signing this Severance Agreement. Employee, therefore, makes the following assurances to Company: (1) Employee has read this Severance Agreement and understands all of its provisions. (2) Employee voluntarily enters into this Agreement, which is contractual in nature. (3) Employee has been given as much time as he wants to study this Agreement and to consult with his lawyer, accountant, spouse, or anyone else whose advice he values. (4) Employee certifies that Company has urged him to consult with his lawyer before entering into this Agreement. IN WITNESS WHEREOF, we have hereunto set our hand and seal on (date) Notarize form.