Severance Agreements Drafted to Protect Your Business

A severance agreement is a written deal. The employer offers pay or benefits beyond what is already owed, and the employee agrees to terms, usually including a release of claims. Florida employers who need a severance agreement attorney should plan the document before the termination meeting, not after it.

KEW Legal is a business law firm with offices in Coral Gables and Sunny Isles Beach. Our lawyers work as outside general counsel for business owners and investors across Miami-Dade and South Florida. This page covers what goes into a separation agreement, what a release cannot safely do, and how the work moves from start to finish.

What Is a Severance or Separation Agreement?

A severance or separation agreement is a signed contract that ends the working relationship on agreed terms. The employer gives something extra, and the employee agrees to conditions in return.

Employers use these agreements in several situations:

• Individual terminations
• Performance-based exits
• Restructurings
• Reductions in force, where positions are cut across a group

Severance is a business decision. The employer decides whether to offer it, how much to pay, and what the employee must do to receive it. The agreement puts those conditions in writing.

Florida is an employment-at-will state. Either side may end indefinite employment at any time for any reason. The limit is that an employer cannot end employment for a reason the law prohibits, such as retaliation or unlawful discrimination, as Laguerre v. Palm Beach Newspapers explains.

What Does a Severance Agreement Cover?

The core terms are the payment, the release of claims, confidentiality, and the return of company property. Each term needs clear wording, because vague terms are harder to enforce.

• Payment and benefits. This is the money, benefit continuation, or other value the employee gets in exchange for the release.
• Release of claims. The employee gives up claims against the employer. Florida law bars employment discrimination because of age under § 760.10, so the release should name the claims it covers.
• Confidentiality and non-disparagement. Drafting must respect limits on what an employer can restrict, especially when an employee reports a violation.
• Return of property and transition. This covers keys, devices, files, and a plan for handing off duties.
• Separation date and paid time off. The agreement should state the date, accrued time off, and final pay.
• Restrictive covenants. Non-compete and non-solicitation terms need care. Under § 542.335, a court will not enforce a restrictive covenant unless it is in a writing signed by the person against whom enforcement is sought.

Handbook policies need care too. Under Quaker Oats Co. v. Jewell, policy statements in an employee manual do not create enforceable contract rights unless the manual states that it is a separate employment contract.

What Rules Apply to Employees Age 40 and Older?

They affect how the document is written, when it is delivered, and whether the release holds up. A release that misses these steps invites a dispute. The EEOC employer guidance covers federal anti-discrimination duties for employers.

Florida’s civil rights law also covers age. Under § 760.11, a court may award back pay and compensatory damages. Under § 760.11, the judgment for the total amount of punitive damages awarded under this section to an aggrieved person shall not exceed $100,000, and the state and its agencies and subdivisions shall not be liable for punitive damages.

What Can a Release Not Waive?

A term that tries to can create new trouble. The biggest risk is a term that appears to punish an employee for speaking up about a legal violation.

Florida’s Whistle-Blower’s Act bars retaliation against an employee who objects to, or refuses to take part in, a practice that violates a law, rule, or regulation. The rule is in § 448.102. An employee who relies on the disclosure protection must first raise the problem with the employer in writing and give the employer a reasonable opportunity to correct it. The rule is in § 448.102.

A clause that seems to penalize reporting can still lead to a retaliation claim, so drafting it carefully matters.

If a dispute over unpaid wages reaches a court, § 448.08 lets the court award a reasonable attorney’s fee to the prevailing party.

How Does the Process Work?

The process runs in five steps, from an intake call to delivery of the agreement. Starting early gives the drafting time to meet the age rules and the restrictive covenant rules.

1. Intake call. We review the planned separation, the employee’s role and age, and the business reason for the exit.
2. File review. We read the employee file, handbook, offer letter, and any prior agreement that touches the release or a non-compete.
3. Drafting. The draft covers payment, the release, confidentiality, property, any restrictive covenant, and the age-related language.
4. Employer review. We walk through the draft with the business and adjust its terms.
5. Delivery. The package goes to the employee with time to review and a clear path for questions before the separation date.

Timing varies with the number of employees and how quickly the business gathers the facts. A common mistake is sending a generic template without checking the handbook or earlier agreements.

Why Work With KEW Legal on Separation Terms?

KEW Legal works as outside general counsel for business owners and investors. Our lawyers draft and review separation terms alongside the rest of a company’s agreements.

• Local offices. The firm has offices in Coral Gables and Sunny Isles Beach and works with clients across Miami-Dade and South Florida.
• Related work. The firm focuses on employment law for employers, along with business contracts, partnership disputes, and commercial leases. Separation terms can be reviewed alongside those documents.
• Responsible lawyer. Kristina E. Wilson is the responsible lawyer for this page. Other lawyers at the firm, including Natalie Martinez, may also work on matters for the firm’s clients.
• Scope of work. The work includes drafting and reviewing agreements, reviewing employment documents, and advising on the terms of a separation. No result is promised.

Common Questions About Severance Agreements in Florida

Most questions come down to whether the agreement is in writing, signed, and clear about what the employee receives.

Talk With KEW Legal Before the Termination Meeting

Plan the agreement before you deliver the news, and the terms will be ready when you need them. If you are planning a layoff, a termination, or a reduction in force that includes an employee age 40 or older, the wording and timing need review first.

Call 305-990-2300 or send us a message to talk with KEW Legal about the separation. Your first consultation is free, confidential, and carries no obligation to continue.