Before signing, review the payment terms, scope of release, confidentiality and non-disparagement language, restrictive covenants, benefits, return-of-property obligations, cooperation duties, tax treatment, and deadlines.
This article provides general information and is not legal advice. The right approach depends on the facts, documents, and law applicable to a particular matter.
Understand what you are releasing
A severance agreement commonly asks the employee to release claims. The scope, exceptions, and preserved rights should be understood before signing.
Look beyond the cash payment
Benefits, equity, bonuses, commissions, references, restrictive covenants, confidentiality obligations, and transition commitments can have substantial value or cost.
Watch the timing rules
Some agreements have statutory consideration or revocation periods. Even when they do not, internal deadlines can affect negotiation strategy.
Frequently asked questions
Can a severance agreement be negotiated?
Sometimes. Leverage depends on the contract, facts, employer priorities, potential claims, and the terms being requested.
Should I sign immediately to avoid losing the offer?
Read the deadline carefully. If the agreement is significant, obtaining advice before signing can help you understand both legal and practical consequences.