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An employment separation agreement, or termination agreement, outlines legitimate reasons for terminating the employment relationship between an employer and employee. It addresses potential legal risks, the terms of termination, and protects the employer's trade secrets and interests. The agreement typically includes a release of claims provision to minimize litigation risks. It may also specify whether the employee will receive monetary compensation, usually granted when termination is without cause. Additionally, the agreement may incorporate non-compete or confidentiality clauses to safeguard the employer's assets from former employees' misuse or misconduct.
