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Ultimately, there are separation agreements to protect companies from litigation from former employees, so you may be wondering what`s in it for workers. Typically, in exchange for “waiving their rights” (such as giving up your right to bring an action in the future), workers receive some sort of compensation in the form of benefits or cash. When employers decide to terminate a job, they want the employee to release the company from all mandatory claims. To do this, most companies use a work separation contract. This is a way of saying that both parties have reached a consensual end to the employment relationship. However, some employers are not willing to negotiate the terms of a termination and separation agreement.

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