Also known as a general release or release. A written contract (or provision in a contract) in which one or more parties agree to give up legal causes of action against the other party in exchange for adequate consideration (that is, something of value to which the party releasing the legal claims is not already entitled). Consideration may be offered in the form of severance.

In the employment context, a release is often used when terminating an employee on an individual or group basis, such as a reduction in force.

To be valid and enforceable, a release must be:

For more information, see Practice Note, Conducting Layoffs and Other Reductions in Force: OWBPA and State Laws.

A general release of claims is also a critical element of a settlement agreement when resolving an employment dispute. For sample settlement agreements, see Standard Documents:

Typically drafted broadly, the release encompasses a wide array of legal claims, including those arising under state and federal anti-discrimination and harassment laws. For more information on waiver of federal discrimination claims, see EEOC: Understanding Waivers of Discrimination Claims in Employee Severance Agreements.

Not all legal claims can be released, however. For more information, see Standard Document, Separation and Release of Claims (Long-Form): Drafting Note: General Release and Waiver of Claims.

In the commercial context, a release may be used to settle actual or potential claims:

In many of these situations, it is likely that one or both of the parties is concerned that there are facts and circumstances that may give rise to a breach claim by the opposing party. The facts and circumstances that give rise to a potential breach may also lead to the desire for an early termination. Therefore, when terminating an agreement early, contracting parties often enter into a release of claims or include a release of claims in the termination agreement.

For more information, see Standard Documents: