An employee is leaving — a mutual parting, a layoff, a termination without cause, or a resignation — and you need to pay agreed severance in exchange for a clean break? A Separation / Severance Agreement (a “separation agreement,” a “severance agreement,” a “termination agreement,” a “separation and release agreement”) is the OFFBOARDING bookend to the documents you signed the person on when they joined: form the company, hire the person, sign the offer letter, the CIIA and the non-compete — and, when it ends, paper the separation with a release of claims. It's what HR leads and founders search for by name when someone departs. PaperKit builds the right one: pick how the employment ended — a MUTUAL separation, a LAYOFF / reduction in force, a TERMINATION WITHOUT CAUSE, or a voluntary RESIGNATION — and it reshapes the whole agreement, its title and its recitals. Then pick the release scope, which rewrites the release-of-claims section: a GENERAL RELEASE of all claims, NO RELEASE (document the terms only), or an ADEA/OWBPA release for an employee age 40 or older — which adds the statutory advice-to-consult-counsel notice, the 21- or 45-day consideration period and the 7-day revocation window a valid age-discrimination waiver requires. Itemize the severance in a schedule — severance pay, an accrued-PTO payout, a COBRA subsidy, a prorated bonus — and it sums to the total consideration the employee receives for signing. Every clause a real separation agreement expects is here and toggleable: the release of claims, return of company property, confidentiality of the agreement, a reaffirmation of surviving obligations that ties back to the CIIA and (optionally) the non-compete, non-disparagement, a neutral reference, post-separation cooperation, and a no-admission-of-liability clause — plus governing law and extra terms. It's self-drafted: the company signatory reviews and e-signs online, the departing employee signs on their printed signature line, and you download the clean PDF, with an optional notary block. (This is a template, not legal advice; release and severance law varies by state and by federal statute — the OWBPA governs ADEA releases for employees age 40+, and some claims cannot be waived — so confirm yours with counsel before relying on this form.)
The big lever — it reshapes the whole agreement, the title and the recitals.
Mutual separation — the parties agreed to end the employment. The most amicable framing.
The lever that rewrites the release-of-claims section.
General release — the employee releases all claims arising from the employment in exchange for the severance. The core of most severance agreements.
The person leaving. They sign on their printed signature line.
Itemize the separation benefits — severance pay, accrued-PTO payout, COBRA subsidy, prorated bonus. Each is a row and the amounts sum to the total consideration the employee receives for signing.
The HR lead / founder / officer signing on behalf of the company. You draft and e-sign online; the employee signs on their printed signature line.
Turn on what applies. The release of claims, return of property, confidentiality, non-disparagement, no-admission, reaffirmation of surviving obligations, neutral reference and cooperation are on by default. For an employee age 40 or older, turn on the ADEA/OWBPA protections (or pick the ADEA release scope above).
A real, section-by-section separation / severance agreement with a severance schedule that sums to the total consideration. The separation type reshapes the whole document; the release scope rewrites the release-of-claims section (including the ADEA/OWBPA protections for age 40+). Publish to get a hosted link you can e-sign online.
$9/mo — remove the DRAFT watermark + “Made with PaperKit” badge, unlimited clean-PDF agreements, and Pro across every tool.
A separation / severance agreement is a template for convenience, not legal advice. Release and severance law varies by state and by federal statute — a valid release of age-discrimination (ADEA) claims for an employee age 40 or older must satisfy the Older Workers Benefit Protection Act (OWBPA), including a written advice-to-consult-counsel notice, a 21- or 45-day consideration period and a 7-day revocation window, and some claims cannot be waived by law. Whether any release or covenant is enforceable depends on the applicable law and the facts. PaperKit is not a law firm and records electronic execution via the signer's typed name; confirm your requirements with counsel before relying on this form.