Churches should consider using a severance agreement when a decision is made to dismiss an employee. The resignation letter should include the reasons for leaving and the effective date of the termination.This legal memorandum provides guidance regarding whether, when, and how severance pay may be provided to church employees who are terminated from church. 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. The severance package just outlines how it will go down. Generally the employer is offering you money in exchange for specific actions from you. A severance agreement usually includes information on severance pay, the continuation of benefits and details on the legal responsibilities of both parties. In California, wrongful termination occurs when your employer fires you or lays you off for unlawful reasons.