Terminating the Employment Relationship

Section 7 L EGALLY E NFORCEABLE S ETTLEMENT AND S EPARATION A GREEMENTS Parties often end employment relationships or resolve disputes arising from the end of an employment relationship by executing a settlement or separation agreement. In most cases, such agreements sever all ties between the parties and specifically provide instruction regarding how the parties will act if their paths cross again. A key to a solid, enforceable settlement or separation agreement – like all contracts – is clarity. The agreement must be written in a manner that allows a party unfamiliar with the circumstances that led to the agreement to read the agreement and clearly understand the parties’ obligations under the agreement. The difficulty in drafting a solid, enforceable agreement is crafting language that clearly defines the parties’ specific obligations to each other, but also broadly addresses all scenarios that may later lead to a dispute. Because the parties’ intent can play a critical role in interpretation of an agreement, it is essential that an agreement be written in a manner that clearly expresses the parties’ intent.

A. P RELIMINARY I SSUES

1. P REAMBLE

The Preamble defines the parties who will be executing the agreement. For example, it may state,

This Settlement Agreement and Release of All Claims (hereinafter referred to as "Agreement") is made and entered into by and between John Jones (hereinafter "Jones") and the City of Fiction (hereinafter “City”) (and hereinafter collectively the “Parties”).

The parties listed in the Preamble need to be signatories to the agreement. These are the parties to whom the agreement applies and who must perform obligations under the agreement. If an agreement is for a specified term, the parties may specify the term of the agreement in the Preamble. 2. R ECITALS Recitals are typically listed immediately after the preamble and contain background information intended to aid someone who is trying to understand or interpret the agreement. The Recitals should identify the issue or matter being resolved. For instance, if the agreement is to resolve a disciplinary dispute, the Recitals should generally explain the discipline at issue (e.g., “On [date], the City issued a Final Notice to terminate Jones’ employment as a police officer. On [date], Jones appealed the Final Notice.”). If the agreement is intended to resolve a lawsuit, the Recitals should specifically reference the case. The following is an example: 1. Jones has an action pending against the City in Fresno County Superior Court, known as John Jones v. City of Fiction, and Does 1 through 10 , designated Case No. S-1234-CV 1234567 (hereinafter referred to as "Civil Action");

Terminating the Employment Relationship ©2019 (s) Liebert Cassidy Whitmore 94