An Employer Separation Agreement is a legally binding contract between employer and employee that outlines the terms of an employee’s separation from the company. This agreement typically includes details such as the date of their last day, any financial severance package or final wages owed to the employee, and any confidential information they must keep confidential during and after the leave of absence. It also outlines any restrictions on either party talking about the separation or taking legal action against each other. By signing this agreement, both parties agree that the terms are fair and reasonable, and it helps ensure a smooth transition for everyone involved.