SEVERANCE AND GENERAL RELEASE AGREEMENT
(Connecticut – Single Employee Separation)
[// GUIDANCE: This template is intended for use when terminating a single employee in Connecticut. It incorporates federal requirements (including the Age Discrimination in Employment Act (“ADEA”) and the Older Workers Benefit Protection Act (“OWBPA”)) and Connecticut-specific considerations. Bracketed items must be customized. Remove all guidance notes prior to execution.]
TABLE OF CONTENTS
- Definitions
- Severance Benefits & Consideration
- Release of Claims
- Representations & Warranties
- Covenants
- Default; Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
1. DEFINITIONS
“Agreement” means this Severance and General Release Agreement, including all schedules and exhibits, as amended from time to time.
“Company” means [Full Legal Name of Employer], a [State of Incorporation] [Entity Type], and its parents, subsidiaries, affiliates, predecessors, successors, assigns, and their respective officers, directors, managers, employees, and agents.
“Employee” means [Employee Name], whose employment with the Company will terminate effective [Separation Date].
“Effective Date” has the meaning set forth in Section 3.7.
“Severance Amount” means the gross aggregate sum of $[Dollar Amount], less applicable withholdings, payable pursuant to Section 2.1.
“Release Period” means the twenty-one (21)-day period (or, if applicable, the forty-five (45)-day period) described in Section 3.6.
“Revocation Period” means the seven (7) consecutive calendar days following Employee’s execution of this Agreement.
[Add additional defined terms as required.]
2. SEVERANCE BENEFITS & CONSIDERATION
2.1 Severance Payment. Subject to (i) Employee’s timely execution and non-revocation of this Agreement and (ii) compliance with its terms, the Company shall pay the Severance Amount to Employee in [lump sum / equal installments] commencing on the first regular payroll date after the Effective Date.
2.2 COBRA Subsidy. [If applicable] The Company shall pay [x] months of the employer-portion of COBRA premiums for Employee and eligible dependents, subject to timely election of COBRA continuation coverage.
2.3 Outplacement Assistance. [Optional] The Company will provide up to [Dollar Amount or Hours] of professional outplacement services, to be used within [Time Period].
2.4 Adequate Consideration. Employee acknowledges that the consideration provided in this Section 2 exceeds anything of value to which Employee is otherwise entitled.
3. RELEASE OF CLAIMS
3.1 General Release. For good and valuable consideration, Employee, on behalf of Employee and Employee’s heirs, executors, administrators, and assigns, hereby irrevocably releases the Company from any and all actions, causes of action, claims, demands, damages, or liabilities, known or unknown, arising on or before the Effective Date, including but not limited to claims under:
• the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq.;
• Title VII of the Civil Rights Act of 1964;
• the Americans with Disabilities Act;
• the Family and Medical Leave Act;
• the Connecticut Fair Employment Practices Act, Conn. Gen. Stat. §§ 46a-51 et seq.;
• the Connecticut Wage Payment Laws, Conn. Gen. Stat. §§ 31-71a et seq.; and
• any other federal, state, or local law, regulation, ordinance, or common-law theory relating to employment or separation of employment.
3.2 Scope Exclusions. Nothing in this Agreement shall be construed to waive:
(a) rights to unemployment or workers’ compensation benefits;
(b) vested rights in any qualified retirement plan;
(c) claims arising after the Effective Date;
(d) rights to enforce this Agreement; or
(e) any right that cannot be lawfully waived.
3.3 Mutual Release by Company. [Optional – include only if negotiated] The Company releases Employee from any and all claims known to the Company as of the Effective Date, excluding claims for fraud, embezzlement, or contractual breaches discovered after the Effective Date.
3.4 ADEA-Specific Disclosures. Employee specifically acknowledges that this release includes claims under the ADEA and that such waiver is knowing and voluntary as required by the OWBPA.
3.5 Advice to Consult Counsel. Employee is hereby advised to consult with an attorney prior to executing this Agreement.
3.6 Consideration Period. Employee has [21 / 45] calendar days to review and consider this Agreement before signing. Execution before the end of the Release Period is voluntary and will shorten the period accordingly.
3.7 Revocation. Employee may revoke this Agreement within seven (7) calendar days after signing by delivering written notice to [Company Contact/Address]. This Agreement shall not become effective until the eighth (8th) day after Employee signs it without revocation (the “Effective Date”).
4. REPRESENTATIONS & WARRANTIES
4.1 Mutual Authority. Each Party represents that it has full authority to enter into and perform this Agreement, and that doing so does not violate any other agreement.
4.2 No Unreported Work-Related Injuries. Employee represents that all known work-related injuries have been reported to the Company.
4.3 Tax Responsibility. Employee acknowledges that neither the Company nor its agents have provided tax advice and that Employee is solely responsible for any tax liability arising from payments under this Agreement.
4.4 Return of Company Property. Employee represents that Employee has returned, or will return within [x] days, all Company property, including documents and electronically-stored information, except as otherwise agreed in writing.
4.5 Survival. These representations and warranties shall survive the Effective Date.
5. COVENANTS
5.1 Confidentiality of Company Information. Employee reaffirms the obligation to keep all Confidential Information strictly confidential and to use it solely for authorized Company purposes.
5.2 Non-Disparagement. Employee agrees not to make any statement intended to harm the reputation of the Company or its affiliates. The Company shall instruct its officers and directors to refrain from making any statement intended to harm Employee’s reputation.
5.3 Future Cooperation. Employee shall cooperate reasonably with the Company in any pending or future investigations, arbitrations, or litigation relating to matters within Employee’s knowledge, provided the Company reimburses reasonable out-of-pocket expenses.
5.4 Restrictive Covenants Incorporated. Any non-competition, non-solicitation, or confidentiality covenants previously signed by Employee remain in full force according to their terms.
6. DEFAULT; REMEDIES
6.1 Employee Breach. If Employee materially breaches Sections 5.1 or 5.2, the Company may:
(a) cease any unpaid Severance Amounts;
(b) seek injunctive relief (subject to Section 8.3); and
(c) pursue damages up to the Severance Amount.
6.2 Company Breach. If the Company fails to pay the Severance Amount when due and does not cure within ten (10) days after written notice, Employee may pursue recovery of the unpaid Severance Amount plus reasonable attorney’s fees.
6.3 Cumulative Remedies. Remedies are cumulative and not exclusive, except as limited by Section 7 (Risk Allocation).
7. RISK ALLOCATION
7.1 Mutual Release & Indemnification. The releases in Section 3 operate as a mutual waiver and discharge of claims. Each Party shall indemnify and hold harmless the other from any breach of its representations, warranties, or covenants herein.
7.2 Limitation of Liability. Except for breaches of Sections 5.1 or 5.2, each Party’s aggregate liability arising out of this Agreement shall not exceed the Severance Amount.
7.3 Force Majeure. Neither Party shall be liable for failure to perform caused by events beyond its reasonable control, provided the affected Party promptly notifies the other.
8. DISPUTE RESOLUTION
8.1 Governing Law. This Agreement shall be governed by and construed in accordance with (i) the laws of the United States to the extent federal law controls and (ii) the laws of the State of Connecticut, without regard to its conflict-of-law principles.
8.2 Forum Selection. Subject to Section 8.3, the state and federal courts located in [County], Connecticut shall have exclusive jurisdiction. Each Party irrevocably submits to such courts and waives any objection to venue.
8.3 Arbitration. [Optional – include if selected] Any dispute not resolved informally shall be submitted to binding arbitration before the American Arbitration Association in accordance with its Employment Arbitration Rules. Judgment on the award may be entered in any court of competent jurisdiction.
8.4 Jury Waiver. [Optional] EACH PARTY HEREBY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT.
8.5 Injunctive Relief. The Parties acknowledge that breaches of Sections 5.1 or 5.2 may cause irreparable harm and agree that limited injunctive relief (but no broader than necessary to protect legitimate interests) may be granted by a court of competent jurisdiction.
9. GENERAL PROVISIONS
9.1 Amendment; Waiver. No amendment or waiver of any provision shall be effective unless in writing and signed by both Parties.
9.2 Assignment. Employee may not assign or delegate any obligations hereunder. The Company may assign this Agreement in connection with a merger, sale, or other business transaction.
9.3 Successors & Assigns. This Agreement is binding upon and inures to the benefit of the Parties and their respective successors and permitted assigns.
9.4 Severability. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary.
9.5 Entire Agreement. This Agreement constitutes the entire understanding between the Parties with respect to the subject matter and supersedes all prior agreements, whether written or oral, relating thereto.
9.6 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which is deemed an original. Electronic signatures shall be deemed to have the same legal effect as originals.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the Parties have executed this Severance and General Release Agreement as of the dates set forth below.
| [COMPANY NAME] | [EMPLOYEE NAME] |
| By: _______ | _______ |
| Name: [Printed] | |
| Title: [Title] | |
| Date: ______ | Date: ______ |
[Notary block or witness lines if required under Company policy.]
[// GUIDANCE:
1. Deliver the Agreement to the employee with the OWBPA-required “Disclosure of Decisional Unit” if a group termination (≥2 employees) – adjust Section 3.6 to 45 days.
2. Attach any confidentiality or restrictive covenant agreements as an exhibit.
3. Confirm COBRA, wage payment timing, and unemployment insurance notices comply with Connecticut statutes.]