One Click Contract: Separation and Release Agreement

Each week, PactSafe will discuss and post about specific standardized agreements and how they can be turned into one-click contracts. Last week, we covered Referral Agreements. This week, we're focusing on the Separation and Release Agreement: what it is, why its typical signing method isn't ideal, and how it can be turned into a one click contract on the PactSafe platform.

Related: One Click Contract: AIA Change Order Form

What is a 1-click contract?

A one click contract is like any other contract, but it’s presented in a way that allows the person signing it to do so by simply clicking on it. With very few exceptions, any contract can be signed with a single click on a website, from a phone, in an email — anywhere you meet your customers digitally, you can deliver a 1-click contract.

What is a Separation and Release Agreement?

Separation and Release agreement is a contract between an employee or contractor and an employer, where the employer offers some sort of monetary incentive for the employee to release any outstanding claims against said employer as they part ways.

What this does for the employer

• Minimizes threat of litigation from employee

What this does for the employee

• Provide some money
• Ensures a period of continued benefits coverage
• Could offer other benefits

Who signs it?

An employee/contractor and their employer both sign the Separation and Release Agreement.

Related: One Click Contract: Employment Agreement

How is it typically signed?

It is typically signed in person, in the HR office, with someone making awkward small talk the entire time.

Why is this signing method not ideal?

It's awkward, you have to bring someone in to make that happen after deciding to part ways, it’s slow, paper kills trees...

How to turn Separation and Release Agreement into a 1-click Contract

How does a Separation and Release Agreement work as a 1-click contract?

Employer enters relevant information into designated fields (i.e how much money they are paying out to employee) and standard release language. For the purposes of this post, we are pretending this is a standard agreement. (It usually is not.) In this case: Employee simply has to accept the terms.

Related: How PactSafe Enables Contactless Contracts

Why does a Separation and Release Agreement work better as a 1-click contract?

Get through this part of the “parting ways process” quickly and do not require any parties to be in person to complete the agreement. Also, if you can standardize these agreements based on pay scale, title, department, etc., you can make life easier for all involved by simply sending the correct document and getting them to accept.

Is a 1-click contract legally binding?

1-click contracts are absolutely binding. Also known as “clickwraps,” courts have enforced millions of contracts accepted by a single click. PactSafe’s platform was built to help ensure 1-click contracts are created in compliance with all the best practices established in 1000’s of court cases over the past 20+ years.

DEMO: How A Separation and Release Agreement Works as a One Click Contract

Check out PactSafe's Contactless Contract and Policy Kit.