Churches should consider using a severance agreement when a decision is made to dismiss an employee. Church shall pay for Employee's benefits for ninety (90) Days following the Termination Date.This article focuses specifically on one aspect of the pastoral separation process: the separation agreement and its implications. This legal memorandum provides guidance regarding whether, when, and how severance pay may be provided to church employees who are terminated from church. When parting ways with an employee, it's important to have a signed contract. Use our free and fillable severance agreement template today. If applicable, issue COBRA information and severance pay. A severance agreement usually includes information on severance pay, the continuation of benefits and details on the legal responsibilities of both parties.