Create a Professional Separation Agreement That Protects Both Parties
Generate compliant employment separation agreements with proper severance terms, release of claims, and ADEA-compliant provisions. Reviewed by three AI agents for balance and fairness.
Starting at $10 during beta.
What is a Separation Agreement?
A separation agreement is a mutual contract between an employer and employee that formalizes the end of their working relationship. Unlike a simple termination letter, it creates binding obligations for both parties and typically exchanges severance benefits for a release of legal claims.
When You Need a Separation Agreement
- Layoffs or position eliminations requiring severance packages
- Voluntary departures where both parties want clear terms
- Negotiated exits following performance or relationship issues
- Early retirement packages with benefits continuation
- Any termination where you want mutual releases and confidentiality
Separation Agreements for Every Situation
Whether it is a layoff, voluntary departure, or negotiated exit, create terms that work for everyone.
Voluntary Departures
Employees leaving on good terms who want clear separation terms
Position Eliminations
Restructuring or layoffs requiring fair, compliant severance packages
Negotiated Exits
Mutual decisions to part ways with agreed-upon terms
Early Retirements
Retirement packages with benefits continuation and release terms
How to Create Your Separation Agreement
Describe the Situation
Tell us about the separation circumstances, severance terms, and any special considerations like non-competes or benefits.
AI Agents Draft & Review
Three AI agents collaborate: one drafts, one ensures legal compliance, one checks for balance. Result: a fair, clearly structured agreement.
Download & Present
Export your agreement as a professional document. Share with the other party, allow time for review, and finalize.
What is Included in Your Separation Agreement
Severance Package Details
Clear terms for severance pay, payment schedule, and any bonuses or equity
Release of Claims
ADEA-compliant release language with proper consideration periods for 40+ employees
Confidentiality Terms
Mutual confidentiality of agreement terms and company information
Non-Disparagement Clauses
Mutual agreement not to make negative statements about each other
COBRA & Benefits Continuation
Health insurance continuation terms, COBRA notice, and any employer contributions
Return of Company Property
Clear list of items to return: equipment, keys, documents, access credentials
Reference Provisions
Agreed-upon reference language and who to contact for employment verification
Non-Compete/Non-Solicit
If applicable, reasonable restrictions on competition and customer solicitation
Important Legal Requirements
21-Day Consideration Period
Under the OWBPA, employees 40+ must have at least 21 days to consider agreements that release age discrimination claims (45 days for group layoffs).
7-Day Revocation Period
After signing, employees 40+ have 7 days to revoke their acceptance. Severance payments should not begin until this period expires.
Knowing & Voluntary
The agreement must be written in plain language, advise consulting an attorney, and provide adequate consideration beyond what is already owed.
Frequently Asked Questions
What is a separation agreement?
A separation agreement is a legal document between an employer and employee that outlines the terms of ending their employment relationship. It typically includes severance pay, benefits continuation, release of claims, and mutual obligations like confidentiality and non-disparagement.
Is severance required by law?
In most US states, severance pay is not legally required. However, it may be required by employment contracts, company policy, or collective bargaining agreements. Employers often offer severance in exchange for a release of legal claims.
What is the 21-day rule for separation agreements?
Under the Older Workers Benefit Protection Act (OWBPA), employees aged 40 or older must be given at least 21 days to consider a separation agreement that includes a release of age discrimination claims. They also get 7 days to revoke after signing.
Can I negotiate my severance package?
Yes, severance agreements are often negotiable. Common negotiation points include the severance amount, benefits continuation period, job reference terms, non-compete scope, and outplacement services. Having a well-drafted initial agreement gives you a strong starting point.
What claims am I releasing in a separation agreement?
Typically, you release claims related to your employment and termination, including discrimination, wrongful termination, and breach of contract. Some claims cannot be waived, such as workers compensation, unemployment benefits, and future EEOC charges.
Is this separation agreement ready to sign?
Pactlio generates professional contract drafts using AI. While our agreements follow standard legal formats and include required provisions like ADEA compliance, we recommend having important agreements reviewed by a licensed attorney before signing. We provide drafts, not legal advice.
Ready to Create Your Separation Agreement?
Generate a professional, compliant separation agreement in minutes. Fair terms for both parties, reviewed by AI.
Create Your AgreementStarting at $10 during beta. Takes less than 2 minutes.