Employee Severance Agreements
A Severance Agreement is a lawful contract between an organization and an employee that indicates the terms of a working end. Ordinarily, a severance agreement offers to pay a whole of cash or term of continuation pay in return for a waiver or arrival of lawful cases that a worker may somehow bring against the organization.
When protected employees leave their jobs the agreement is signed between employer and the employee. For employers, the benefit of this agreement is that the employee will never sue the organization after leaving the job and will not ask for any legal claims against the employer, the employee may have. An employee has to undergo for a transition period so that no information loss is there when an employee leaves the company.