In certain circumstances, a "mutual separation" may be
the right fit to effect an individual's cessation of
employment.
What is a mutual separation?
A mutual separation, also referred to as a "mutual
exit" or "retirement agreement" is a mutually
agreeable arrangement between an employer and employee providing
for, among other things, the cessation of the employee's
employment. The terms in a mutual separation agreement are
negotiated prior to the actual cessation of employment.
Advantages of a mutual separation
For an employer, there are several advantages of utilizing a
mutual separation agreement.
First, a mutual separation agreement provides an employer and
employee with flexibility. With a mutual separation, there
is an opportunity to collaborate with the employee on the terms of
their separation. In the context of succession planning this is
particularly beneficial, as a mutual separation agreement can set
out a mutually agreed upon timeline for
