Controlled Separation Contract

Controlled Separation Contract for the United States

Controlled Separation Contract Template for United States

Create a bespoke document in minutes, or upload and review your own.

4.6 / 5

4.8 / 5

Let's create your Controlled Separation Contract

1. Select your governing law:

2. Enter your key requirements:

3. Create your document to edit, review or download

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

"I need a Controlled Separation Contract for a senior software engineer who is being let go as part of a workforce reduction, with a six-month non-compete clause and standard severance package of 3 months' salary, effective March 15, 2025."

Your data doesn't train Genie's AI

You keep IP ownership of your information

Generate a Bespoke Document

1. Select your governing law:

2. Enter your key requirements:

3. Create your document to edit, review or download

Download a Standard Template

Get our United States-compliant Controlled Separation Contract

4.6 / 5

4.8 / 5

Alternatively: Run an advanced review of an existing
Controlled Separation Contract

Let ��Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Controlled Separation Contract?

The Controlled Separation Contract serves as a comprehensive framework for managing employee departures in a controlled and mutually beneficial manner. This document type is particularly relevant when organizations need to implement workforce reductions, restructuring, or individual separations while minimizing legal risks and ensuring compliance with U.S. federal and state regulations. The contract typically includes provisions for severance payments, benefits continuation, confidentiality obligations, and release of claims, while addressing specific requirements under various employment laws such as ADEA, OWBPA, and state-specific regulations.

What sections should be included in a Controlled Separation Contract?

1. Parties: Identification of employer and employee

2. Background: Context of employment and reason for separation

3. Definitions: Key terms used throughout the agreement including defined terms from relevant employment laws and regulations

4. Separation Terms: Date of separation, transition period details, and immediate effects of separation

5. Compensation and Benefits: Details of severance package, continuing benefits, payment terms, and tax treatment

6. Release of Claims: Mutual release of legal claims including specific references to federal and state employment laws

7. Confidentiality Obligations: Ongoing confidentiality requirements and handling of sensitive information

What sections are optional to include in a Controlled Separation Contract?

1. Non-Compete Provisions: Restrictions on future employment and competitive activities, subject to state law limitations

2. Equity Compensation: Treatment of stock options, RSUs, or other equity-based compensation

3. Outplacement Services: Terms of career transition support and professional services provided

4. Reference Provision: Agreement on handling of employment references and internal/external communications

What schedules should be included in a Controlled Separation Contract?

1. Schedule A - Compensation Details: Detailed breakdown of severance package components including payments and benefits

2. Schedule B - Benefits Continuation: Specific terms of ongoing benefits including health insurance and COBRA details

3. Schedule C - Company Property: Comprehensive list of company property to be returned

4. Appendix 1 - Release Agreement: Detailed release of claims document compliant with federal and state requirements

5. Appendix 2 - OWBPA Disclosure: Age discrimination disclosures and information required under the Older Workers Benefit Protection Act

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Agreement

Confidential Information
Effective Date
Employee

Intellectual Property

Covered Period

Restricted Period
Revocation Period
Termination Date

Clauses

Relevant Industries

Technology
Financial Services
Professional Services
Manufacturing
Healthcare

Relevant Teams

Human Resources
Legal
Finance
Operations
Executive Leadership

Relevant Roles

Chief Executive Officer
Senior Manager
Director
Professional Staff
Technical Specialist

Industries

Fair Labor Standards Act (FLSA): Federal law establishing standards for wage, overtime pay, recordkeeping, and child labor. Must be considered when structuring final compensation arrangements.

Worker Adjustment and Retraining Notification (WARN) Act: Federal law requiring employers to provide advance notice of significant layoffs, which may affect the timing and structure of separation agreements.

Age Discrimination in Employment Act (ADEA): Federal law protecting workers 40 and older from discrimination, requiring specific provisions and time periods for review in separation agreements.

Americans with Disabilities Act (ADA): Federal law ensuring equal rights for individuals with disabilities, which must be considered in separation terms and conditions.

Title VII of the Civil Rights Act: Federal law prohibiting employment discrimination based on race, color, religion, sex, and national origin, affecting release of claims provisions.

Employee Retirement Income Security Act (ERISA): Federal law governing employee benefit plans, crucial for addressing continuation or termination of benefits in separation agreements.

Consolidated Omnibus Budget Reconciliation Act (COBRA): Federal law providing continuation of group health coverage that would otherwise be terminated, must be addressed in separation terms.

Health Insurance Portability and Accountability Act (HIPAA): Federal law protecting medical information privacy, relevant when addressing health benefits in separation agreements.

Internal Revenue Code Provisions: Federal tax regulations affecting the treatment of severance pay, benefits, and other compensation in separation agreements.

State-Specific Employment Laws: Various state laws governing employment termination, including notice periods, final payment requirements, and non-compete restrictions.

Older Workers Benefit Protection Act (OWBPA): Federal law requiring specific provisions in separation agreements for workers over 40, including mandatory review periods.

Securities Laws: SEC regulations and insider trading considerations, particularly relevant for separation agreements with executives or officers.

Find the exact document you need

Community Property Transmutation Agreement

A legal agreement used in U.S. community property states to change the character of property between spouses from separate to community property or vice versa.

������Ƶ

How ������Ƶ reduced drafting time by 75% for a legal firm

Let's create your Controlled Separation Contract

Generate a Bespoke Document

What is a Controlled Separation Contract?

What sections should be included in a Controlled Separation Contract?

What sections are optional to include in a Controlled Separation Contract?

What schedules should be included in a Controlled Separation Contract?

Authors

Alex Denne

Find the exact document you need

Community Property Transmutation Agreement

Separation Terms Agreement

Separation Agreement For Married Couples

Separation Agreement Not Married

Therapeutic Separation Agreement

Generic Separation Agreement

Civil Separation Agreement

Collaborative Separation Agreement

Healthy Separation Agreement

In Home Separation Agreement

Diy Separation Agreement

Nesting Separation Agreement

Structured Separation Agreement

Separation Agreement Cohabiting Couples

Property Settlement Agreement Not Married

Post Separation Agreement

Private Separation Agreement

Employee Last Chance Agreement

Marital Separation And Property Settlement Agreement