When an employee leaves your business, it is always a good idea to ask for a general release relating to the employee's termination. Obviously, an employee leaving on good terms is more likely to sign such a release than an employee who is unhappy about the circumstances surrounding the termination. However, it doesn't hurt to ask, and the results may surprise you. Remember to observe the timing considerations outlined in the document so that the release is valid if the ex-employee chooses to sign it. While the release won't prevent an employee from suing, it can go a long way in preventing him or her from winning.
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Employee termination contract