Extract data from separation agreements

A separation agreement is the contract an employer and a departing employee sign to settle the terms of the exit. In exchange for severance pay and continued benefits, the employee gives a general release of claims against the company, and usually agrees to a set of ongoing obligations. It is not a termination letter, which is only the notice that employment is ending, and it is not a settlement agreement, which resolves an active dispute. The separation agreement is the negotiated package at the end of the employment relationship. Vanguard Analytics Inc. and Priya Sharma sign one with an effective date of 2026-06-30. The document turns on a handful of terms. The severance is stated as an amount and a number of weeks, 48,000 USD over 12 weeks here, and often paid on a schedule rather than in one lump. Benefits continuation (COBRA) runs for a set number of days, 90 in this case. Then come the restrictive covenants that the CUAD clause taxonomy catalogs: a non-compete with a duration in months, a no-solicit of employees, a no-solicit of customers, a confidentiality obligation, and a non-disparagement clause. At the center sit the release_of_claims and the covenant_not_to_sue. When the employee is 40 or older, the release of age claims under the ADEA is only valid if the OWBPA timing is honored, a 21-day period to consider and a 7-day period to revoke, so those dates carry legal weight. Talonic reads the agreement and returns the employee, the employer, the severance_amount and severance_period_weeks, the benefits continuation, and each restrictive covenant as fields, with the severance_payments, the benefits_schedule, and the restricted_activities as tables. The 48,000 USD severance is checked against the payment schedule, two 24,000 USD installments here, and each covenant returns as a boolean plus its duration so a 6-month non-compete is legible as its own value. Amounts are typed as numbers in USD and the effective, signature, and expiration dates parse to ISO 8601. Talonic captures the clauses exactly as drafted and does not advise whether the release is valid, whether a covenant is enforceable, or whether the OWBPA period was met.

What gets extracted from separation agreements

How extraction works for separation agreements

Separation agreements come from HR platforms and outside counsel as signed PDFs, and their clauses sit in different order from one template to the next. Talonic classifies the agreement and aligns it to the employment-contract schema in the Field Registry, whose clause set follows the CUAD taxonomy, so severance_amount, severance_period_weeks, benefits.continuation, non_compete, no_solicit_of_employees, release_of_claims, and covenant_not_to_sue each resolve to a field while severance_payments, benefits_schedule, and restricted_activities return as tables. The severance amount is typed as a number in USD and reconciled against the payment schedule, so a 48,000 USD figure paid in two 24,000 USD installments is checked to foot. Each restrictive covenant returns as a boolean with its duration in months, and the effective, signature, and expiration dates parse to ISO 8601. Every value carries a confidence score and a source-region pointer under DIN SPEC 91491, so an HR lead can verify the severance and the release against the signed page. Talonic returns the terms as written and makes no judgment about whether the release or any covenant is enforceable.

Sample extraction

A separation agreement with severance installments and restrictive covenants

{
  "document_number": "SEP-2026-0442",
  "document_date": "2026-06-16",
  "effective_date": "2026-06-30",
  "employee.name": "Priya Sharma",
  "employee.id": "EMP-20871",
  "employee.position": "Senior Data Analyst",
  "employer.name": "Vanguard Analytics Inc.",
  "employment_start_date": "2021-03-01",
  "severance_amount": 48000,
  "currency": "USD",
  "severance_period_weeks": 12,
  "benefits.continuation": true,
  "benefits.duration_days": 90,
  "non_compete": true,
  "non_compete_duration_months": 6,
  "no_solicit_of_employees": true,
  "no_solicit_of_customers": true,
  "confidentiality_obligation": true,
  "release_of_claims": true,
  "covenant_not_to_sue": true,
  "non_disparagement": true,
  "anti_assignment": true,
  "termination_for_convenience": false,
  "governing_law": "State of New York",
  "signature_date": "2026-06-18",
  "expiration_date": "2026-07-09",
  "severance_payments": [
    {
      "payment_date": "2026-07-15",
      "amount": 24000,
      "payment_type": "installment"
    },
    {
      "payment_date": "2026-08-15",
      "amount": 24000,
      "payment_type": "installment"
    }
  ],
  "benefits_schedule": [
    {
      "benefit_type": "Health insurance (COBRA)",
      "start_date": "2026-07-01",
      "end_date": "2026-09-29",
      "coverage_amount": 2100
    }
  ],
  "restricted_activities": [
    {
      "restriction_type": "non-compete",
      "duration_months": 6,
      "geographic_scope": "New York metropolitan area",
      "description": "Shall not join a competing analytics firm serving the same client segment"
    },
    {
      "restriction_type": "non-solicit",
      "duration_months": 12,
      "geographic_scope": "United States",
      "description": "Shall not solicit employees or customers of Vanguard Analytics"
    }
  ]
}

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