AnswersDictionary

What is a termination certification, and should a departing consultant sign one?

ContractorsEmployeesCompliance

A termination certification is a one-page statement a departing consultant or employee signs confirming that they have returned or destroyed the company's confidential information, delivered everything they created for it, and understand that their confidentiality and assignment obligations continue. No statute requires it. It is useful because it turns a vague obligation into a dated, signed admission, which matters if the person later turns up at a competitor with your customer list.

Whether you need one

The underlying obligations already exist in the consulting agreement or the CIIAA, and they survive termination whether or not anyone signs anything more. The certification adds evidence and a moment of attention. Many CIIAA forms attach one as an exhibit and require the signer to complete it on departure, in which case refusing is itself a breach. Where the agreement is silent, you can ask and the person can decline; a refusal is worth writing down.

What it should say

That the signer has returned all documents, devices and data belonging to the company and kept no copies. That they have disclosed and assigned every invention or work product made during the engagement, with any exceptions listed. That they will continue to comply with the confidentiality, non-solicitation and, where enforceable, non-competition terms of the agreement they signed, identified by name and date. That they did not use a former employer's or client's confidential information in their work for the company. Signed and dated, with a copy to each side.

What it should not do

It should not add obligations. A departing consultant has no reason to accept a longer non-solicit or a new restriction in exchange for nothing, and a court will not hold them to one. If the company wants more than the original agreement gave it, that is a separation agreement with consideration attached, not a certification.

Arabella does not carry a standalone termination certification today. Ask Arabella can say what one needs to cover for your CIIAA or consulting agreement.

Written by the lawyers who built Arabella. This is legal information, not legal advice for your situation, and reading it does not make us your lawyers. For a real dispute or a high-stakes decision, talk to a licensed attorney. More questions.

What is a termination certification, and should a departing consultant sign one?