An agreement in which an employee who is being terminated agrees not to sue the employer in exchange for specific benefits is called a/an
A) terminal contract.
B) separation agreement.
C) non-enforceable contract made under duress.
D) severance contract.

Question

Quizplus · Accepted Answer

A separation agreement is an agreement between an employer and an employee in which the employee agrees not to sue the employer in exchange for specific benefits, such as severance pay, continuation of health insurance, etc. The agreement is signed at the time of termination and is designed to provide a smooth transition for both parties. It is a legally binding document, and both parties must adhere to the terms of the agreement.

An Agreement in Which an Employee Who Is Being Terminated