Part-Time/Hourly Employee Severance Agreement: Protecting Both Employer and Employee
Designed for clarity and fairness, this Severance Agreement template helps part-time or hourly employers offer structured, legally compliant severance pay and closure to departing staff. It's a practical tool to foster goodwill and protect both parties.
Key Components of This Severance Agreement
- Defined Severance Payment
Clearly spells out the severance amount or formula (e.g., number of weeks’ pay based on recent work hours), and when it will be paid. - Final Wages & Accrued Benefits
Ensures all unpaid hours and any accrued paid time off are included separately from severance remuneration. - Benefits Continuation Options
Describes whether health or other benefits end immediately or can continue (e.g., via COBRA or similar), and under what conditions. - Return of Company Property
Specifies what must be returned—such as ID cards, tools, or uniforms—and by what deadline. - Confidentiality & Non-Disparagement
Protects sensitive business information and maintains reputational respect on both sides. - Release of Claims
Offers legal closure: in exchange for severance, the employee releases claims arising from the employment or termination. - Governing Law & No Admission of Liability
Clarifies jurisdiction and ensures the agreement does not imply any wrongdoing.
Why Use This Severance Agreement?
- Fair and Transparent Administration
Provides a clear, equitable framework—especially important for employees paid hourly or on a part-time basis. - Legal Peace of Mind
Helps employers limit potential disputes by setting expectations and offering sealing legal closure. - Adaptable and Employee-Friendly
Flexible enough to adapt to your local laws and policies, while still respecting the employee’s earned benefits.
How to Customize
- Tailor the severance formula (e.g., number of weeks of pay) to your company guidelines or local regulations.
- Define benefits timing—whether they end immediately or continue, and under what mechanisms.
- Adjust the scope of confidentiality and release clauses based on local legal standards.
- Modify the governing law to your jurisdiction and ensure consistency with company policy.
