Separation Agreement

Draft Separation Agreements in Minutes, Not Hours

12 minutes with Para

Explore this workflow

Get started with Para

Para is an AI colleague for legal teams. Send it this work by email, Teams or Slack, and it hands back the finished document.

12 minutes with Para

What you'll need

Employee Details and Compensation Data
Existing Employment Agreements
Severance Terms Summary

Plans from $20 a month, with usage included.

Workflow

Overview

CaseMark's Separation Agreement skill automates the drafting of employer-side Employee Separation and Release Agreements, complete with severance terms, comprehensive releases, ADEA/OWBPA compliance provisions, and post-employment covenants. Powered by AI trained on employment law best practices, it produces jurisdiction-aware agreements in a fraction of the time manual drafting requires.

Drafting separation agreements is a time-intensive process that requires careful attention to federal and state compliance requirements, particularly ADEA/OWBPA provisions for employees over 40. Each agreement must be tailored to the specific jurisdiction, employee circumstances, and company policies—making it easy to overlook critical clauses or produce inconsistent documents across terminations.

CaseMark automates the entire drafting process by generating comprehensive separation agreements from your employee details and desired severance terms. The AI ensures every required compliance provision is included, covenants are tailored to the governing jurisdiction, and the final document is professionally structured and ready for attorney review.

How to hand this to Para

1. Send Para the files
Email them, drop them in a Teams or Slack message, or upload them.
2. Para runs the Separation Agreement skill
It works from your files and checks its citations against the record.
3. The finished document comes back
Para returns it where you asked, usually as a DOCX, and offers the next step.

Example request · email, Teams or Slack

Para, run the Separation Agreement skill for the Garcia matter. I've attached the Employee Details and Compensation Data, Existing Employment Agreements and Severance Terms Summary. Send the finished draft back here as a DOCX.

What Para does

1. Upload employee details, existing agreements, and desired severance terms
2. AI drafts a complete separation agreement tailored to the governing jurisdiction
3. Review and customize release language, covenants, and compliance provisions
4. Export the finalized agreement in your preferred format (DOCX, PDF)

What you get

Opening and Recitals
Separation Terms and Final Compensation
Consideration and Severance Package
Release of Claims with ADEA/OWBPA Compliance
Restrictive Covenants and Non-Solicitation
Cooperation, Non-Disparagement, and Confidentiality
Execution and Acknowledgment Pages

What it handles

Comprehensive severance terms with lump sum or installment scheduling
ADEA/OWBPA-compliant release language with required waiting and revocation periods
Jurisdiction-specific restrictive covenants including non-compete and non-solicitation
General release of claims covering federal and state employment statutes
Post-employment cooperation and non-disparagement clauses
Equity treatment and COBRA subsidy provisions

Required documents

Employee Details and Compensation Data
Employee name, title, hire date, separation date, salary, accrued PTO, bonuses, commissions, and equity information
.pdf, .docx, .xlsx
Existing Employment Agreements
Offer letters, employment contracts, invention assignments, and any prior restrictive covenant agreements
.pdf, .docx
Severance Terms Summary
Desired severance amount, payment schedule, COBRA subsidy details, outplacement services, and any other benefits to be offered
.pdf, .docx

Supporting documents

Company Separation Policy
Internal policies governing separation procedures, standard severance formulas, and approval requirements
.pdf, .docx
Equity Plan Documents
Stock option plans, RSU agreements, or other equity compensation documents governing post-termination treatment
.pdf, .docx

Why teams use it

Reduce drafting time from hours to minutes while maintaining legal precision and compliance

Ensure ADEA/OWBPA compliance with automatically included consideration periods, revocation rights, and counsel advisement language

Generate jurisdiction-specific restrictive covenants that reflect current enforceability standards

Produce consistent, comprehensive agreements that reduce the risk of missing critical provisions

Questions

Does the agreement include ADEA/OWBPA compliance for employees over 40?

Yes. CaseMark automatically includes the required 21-day consideration period (or 45 days for group terminations), 7-day revocation period, and advisement-to-consult-counsel language mandated by the Older Workers Benefit Protection Act.

Can I customize the restrictive covenants for my jurisdiction?

Absolutely. CaseMark tailors non-compete, non-solicitation, and non-disclosure provisions based on the governing state law you specify, accounting for jurisdictions with restrictive covenant limitations or outright bans.

What types of claims does the general release cover?

The generated release covers a comprehensive list including Title VII, ADA, ADEA, FMLA, FLSA, WARN Act, ERISA (to the extent waivable), GINA, and applicable state wage/hour and anti-discrimination statutes. CaseMark also preserves carve-outs for claims that cannot be legally waived.

Can I structure severance as installment payments instead of a lump sum?

Yes. CaseMark supports both lump sum and installment payment structures, and includes appropriate clawback and forfeiture provisions tied to the employee's compliance with agreement terms.

Does the agreement address equity and stock options?

Yes. CaseMark includes provisions for equity treatment including vesting acceleration, extended exercise windows, and references to governing plan documents, all customizable to your specific situation.

Is the output ready to send to the departing employee?

CaseMark produces a professional, near-final draft that should be reviewed by counsel before execution. The AI handles the heavy drafting work so your attorneys can focus on strategic review and client-specific adjustments.