Termination Agreement Law and Legal Definition

Termination Agreement (“Agreement”) is a legal agreement between an Employee and an Employer drafted to specify the terms of the termination of the employee. A Termination Agreement is an agreement between Employer and Employee. It governs the rights, responsibilities and benefits of the parties arising from the termination of the employee. Employee termination is the process by which an organization ends an individual's employment. The decision to terminate an employee varies widely and can include such factors as downsizing, breach of company policy, or poor performance. Terminating an employee is a sensitive matter and should be handled with care and consideration. The Termination Agreement should tactfully outline all aspects of the termination process to ensure that former employees depart with as little misunderstanding as possible.