Separation Agreement
The agreement that ends an employment relationship on recorded terms: severance on one side, a release of employment-related claims on the other.
No account needed to start.
AI-assisted document tools — not legal advice. A starting point you can understand and customize.
What it is
A separation agreement sets out the terms on which an employee leaves a company. It usually pairs severance pay or some other benefit with a release — the departing employee gives up employment-related claims against the employer in exchange for money or benefits they would not otherwise receive. It also records the practical closeout: final pay, company property, benefits continuation, and which obligations from the job carry on afterward.
When you’d use it
- An employment relationship is ending and severance is being offered.
- You want final pay, benefits, and property return recorded in one place.
- The employer is asking the departing employee to release employment-related claims.
- A departing employee reads another language and should understand the terms fully.
Key sections & clauses
The parts a separation agreement usually needs to cover. Use them as a checklist — XOsign flags the ones a draft is missing.
Separation date & final pay
The last day of employment and what is owed regardless of signing.
Severance consideration
The pay or benefits offered in exchange for signing — the part that is conditional.
Release of claims
The employment-related claims the departing employee is being asked to give up.
Claims not released
What the release does not cover — the carve-outs worth reading line by line.
Continuing obligations
Confidentiality, IP assignment, and any restrictive covenants that survive the job.
Benefits & continuation coverage
What happens to health coverage, retirement accounts, and unvested equity.
Company property & references
What must be returned, and what the employer will say about the departure.
Time to review & revoke
How long there is to read it, and whether a revocation window applies.
Understand it, translate it, refine it, sign it.
The same four steps behind every XOsign agreement — from the moment you upload or start a draft to the moment it’s signed.
Understand it
XOsign reads the document and explains every clause in plain language, so you know what you're agreeing to before you sign — not after.
Translate it
Read and sign in English or Spanish. XOsign presents the agreement side by side so nobody signs a document they can't fully read.
Refine it
XOsign flags missing, vague, or one-sided terms and suggests clearer language for your consideration — so you can decide what the agreement should say.
Sign it
Send it for legally binding e-signature (ESIGN/UETA) with a tamper-evident audit trail and a trusted timestamp on the signed copy.
Frequently asked questions
What is a separation agreement actually trading?
How much time does someone get to review a separation agreement?
Should I have an attorney review a separation agreement?
XOsign provides AI-assisted document tools and does not provide legal advice. These templates are starting points you can understand and customize — not a substitute for advice from a qualified attorney. Requirements vary by state and situation.
Start your separation agreement in XOsign.
Understand every clause, translate it for whoever signs, and send it for signature — all in one place. No account needed to start.