Severance Agreement Review

If you were just handed a severance agreement with a deadline on it, slow down. You are being asked to give up legal claims, usually in exchange for money the employer was not otherwise required to pay. That trade can be fine, or it can be a bad deal. A review costs you nothing.

What You May Be Giving Up

Things these agreements commonly ask you to give up:

• Any claims you have against the employer, known or unknown
• Your right to say anything about the company, through non-disparagement clauses
• Sometimes the ability to work for competitors or solicit coworkers
• Cooperation with the employer in future litigation

Workers 40 and over have extra protections: if the release covers age claims and is part of a group termination, the employer must give you 21 days to consider (45 in some group programs) and 7 days to revoke after signing.

Signs You May Have a Case

• The deadline is days away and the recruiter or HR person is applying pressure
• The release language covers claims you may actually have
• The non-disparagement clause binds you but not the company
• No reference or announcement language is included
• The payment terms are vague about timing and taxes

What To Do Now

1. Do not sign on the spot, whatever they say about the offer expiring
2. Read the whole document and mark every clause you do not understand
3. Check whether signing affects your unemployment benefits
4. Have an employment lawyer review it; we do this for a flat fee, and sometimes at no charge
5. If you have real claims, the agreement may be a starting offer, not a final one

Frequently Asked Questions

They gave me five days to sign. Is that legal?

Often it is, unless you are 40 or over and releasing age claims, where the 21-day rule applies. Short deadlines are a pressure tactic, not a reflection of your bargaining position.

Will turning it down make things worse?

Turning down a severance does not bring your job back, but it keeps your claims. Sometimes the right answer is signing. Sometimes it is negotiating. You cannot know which without someone reading it against your facts.

This page describes the law in general terms. It is not legal advice for your specific situation, and deadlines can be short. Call the firm for a free evaluation of your case.