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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 is often referred to as a separation agreement, where the employee voluntarily agrees to end their employment and relinquishes the right to contest the termination or sue the employer under applicable laws. In exchange, the employer typically provides some form of compensation, often a severance package. Agencies may consider implementing a termination agreement when employees have specific rights to hearings, such as veterans preference hearings or grievance arbitration.
