Churches should consider using a severance agreement when a decision is made to dismiss an employee. A severance agreement is a contract that an employer may ask an employee to sign when they are terminated from a job.This legal memorandum provides guidance regarding whether, when, and how severance pay may be provided to church employees who are terminated from church. A severance agreement usually includes information on severance pay, the continuation of benefits and details on the legal responsibilities of both parties. This state-specific guide covers labor and employment case law, statutes, rules, and regulations that HR professionals and clients often encounter We've created a sample employee termination form for church leaders.