Termination of Employment Contract
This Termination of Employment Contract (hereinafter referred to as “agreement”) is entered into as of this ____ day of _____, 20___, to be effective immediately, by and between ________ (hereinafter referred to as “employer”) and _____ (hereinafter referred to as “employee”).
Both employer and employee mutually agree to terminate their existing employment relationship. This agreement supersedes and replaces any previous agreements between the parties.
Employer and employee acknowledge that through the termination of this agreement, all responsibilities assigned to employee are terminated and all wages and employee benefits that arise out of the employment relationship are concluded. Employer also agrees to pay employee any outstanding wages or other benefits as listed in Section 4 of this agreement.
Employer provides the following payment breakdown:
1. All unpaid wages and other deposits such as vacation pay and/or bonuses accrued to date shall be paid in full within ___ days from the date of the termination.
2. Severance pay of ________ shall be paid in a lump sum within ___ days from the date of the termination.
3. Employee shall be entitled to a prorated portion of the employer’s contributions to health insurance, pension or other fringe benefits that remain available during the period provided by the applicable plan or policy.
4. Any other outstanding wages, fees, bonuses or benefits shall be paid in accordance with applicable federal, state and local laws and policies.
Employee agrees to return to employer any equipment and all other property of the employer in employee’s possession and to certify that the employer’s records are accurate, up to date, and complete.
Employee understands and agrees that he/she will not be eligible for any other employment benefits provided by the employer, including but not limited to stock options, vacation pay, bonus payments, work injury compensation, and other benefits.
Employee understands that this termination is final and binding and that he/she is not entitled to any further payments or benefits from employer and also understands he/she is obligated not to compete with the employer during the term of this agreement.
Any dispute arising out of or related to this employment relationship shall be subject to binding arbitration in accordance with the terms of this agreement, including any dispute concerning the interpretation of this agreement, the enforceability of any provision hereof, or breach hereof or thereof.
Employer and employee have signed this agreement in good faith and have read, fully understand and agree to its terms and conditions.
Employer _____________________________
Employee _______________________________
