Churches should consider using a severance agreement when a decision is made to dismiss an employee. This legal memorandum provides guidance regarding whether, when, and how severance pay may be provided to church employees who are terminated from church.Severance pay that is promised in a written policy or other form of agreement is an enforceable part of the wage agreement under the Texas Payday Law. NOTE: The following termination agreement is a very basic template for churches and pastors to use strictly as a resource. We've created a sample employee termination form for church leaders. This download includes: Download the form here. Church shall pay for Employee's benefits for ninety (90) Days following the Termination Date. A severance agreement usually includes information on severance pay, the continuation of benefits and details on the legal responsibilities of both parties. A church should have a policy regarding severance pay in the case of any form of involuntary termination. Some churches also offer counseling reimbursements for the pastor and his family.