Severance Review & Negotiation

Has your former employer REQUESTED YOU SIGN A SEVERANCE AGREEMENT?

Severance Agreements contain important terms that govern the termination of employment as well as future conduct. While the monetary amount is a significant consideration, severance agreements often contain other important terms like:

• a general release of claims;

• a confidentiality clause;

• a non-disparagement clause;

• a liquidated damages clause; and

• other clauses controlling your conduct.

Retaining an experienced employment attorney to review these terms and explain their significance ensures that you fully understand what is being asked of you and whether it is fair and reasonable.

Statutes governing individual rights are ALWAYS changing.

Employers have attorneys review their severance agreements to protect their interests, and so should you. Do not accept the terms of a severance agreement just because you believe the employer will not negotiate. Employers offer severance because the monetary sums are less valuable to the employer than your waiving your rights.

Know what you are giving up. Speak with an experienced employment attorney before you sign.

What is a General Release?

A Severance Agreement almost always contains a “general release.” A “general release” waives any claims against the employer, regardless of whether you knew you had the claim. Once you sign a severance that contains a “general release,” it is unlikely you will be able to proceed with a claim against your former employer, regardless of the strength of the claim.