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terminations are one of the employment events which give rise to the most employer employee weight claims including wage claims discrimination claims etc separation agreements can be a very cost-effective and easy way to head off some of those claims and mitigate risks so a separation agreement is an agreement that an employer gets from an employee whos leaving whos leaving employment very often its when the employee has been terminated and the main purpose of a separation agreement the employer is seeking a release of claims from the employee in exchange for a benefit given to the employee normally that benefit is severance pay doesnt have to be severance pay though it can be a non-monetary benefit which the employee is receiving in order to make the severance agreement binding the employee gives the employer something thats the release of claims and other agreements and the employer gives the employee a benefit severance pay so severance isnt for every situation but if severan
