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A termination agreement is a contract between an employer and employee that outlines the rights, responsibilities, and benefits related to the employee's termination. It often occurs when the employee voluntarily ends their employment, with the employee waiving their right to contest the termination or sue the employer in exchange for compensation, typically a severance payment. Organizations may consider such agreements when an employee has specific rights to a hearing, including veterans preference hearings, grievance arbitration, or other legal protections. This helps ensure that both parties understand their obligations and the terms of separation.
