A Severance Agreement is a legal document that outlines the terms under which an employee's employment is terminated. It typically includes details about severance pay, benefits, and any conditions the employee must meet, such as confidentiality or non-compete clauses. This agreement helps protect both the employer and the employee by clarifying expectations and responsibilities after the employment ends. These agreements are often negotiated when an employee is laid off or resigns. They can also address issues like the return of company property and the handling of outstanding vacation days. Overall, a Severance Agreement aims to provide a smooth transition for both parties involved.