Severance Agreement Review for Employees
Severance agreements are often presented to employees at the end of employment and may include provisions affecting compensation, benefits, and post-employment obligations. These agreements are frequently time-sensitive and may require careful review before acceptance.
Burts Law assists employees with reviewing severance agreements to help them understand the terms, obligations, and potential legal implications of the agreement before signing.
When Employees Are Offered Severance Agreements
Employees may be presented with severance agreements in a variety of circumstances, including:
- Layoffs or workforce reductions
- Position eliminations or restructuring
- Termination without cause
- Resignation in connection with workplace disputes
- Separation following internal complaints or investigations
Reviewing a severance agreement allows employees to understand how the proposed terms may affect them after employment ends.
Common Provisions in Severance Agreements
Severance agreements often include provisions that extend beyond severance pay alone. Burts Law reviews and explains provisions such as:
- Severance pay and payment structure
- Continued benefits or COBRA contributions
- Release of claims against the employer
- Confidentiality and non-disclosure provisions
- Non-disparagement clauses
- Non-compete or non-solicitation restrictions
- Return of company property and information
- Tax and reporting considerations
Each provision is evaluated in light of applicable law and the employee’s circumstances.
Severance Agreement Review: Key Provisions Chart
| Severance Term | Why It Matters to Employees |
| Severance Pay | Affects the amount and timing of compensation |
| Release of Claims | Determines which legal rights the employee is waiving |
| Non-Disparagement | May restrict what the employee can say after separation |
| Restrictive Covenants | Can limit future employment or business opportunities |
| Benefits Continuation | Affects health insurance and other benefits |
| Payment Timing | May impact taxes and financial planning |
Negotiation Considerations
Some severance agreements may be subject to negotiation depending on the circumstances, employer policies, and applicable law. Burts Law assists employees by:
- Reviewing proposed severance terms
- Identifying provisions that may warrant discussion
- Evaluating proposed revisions
- Communicating with employers or their counsel when appropriate
Negotiation considerations vary based on the facts of each matter.
Understanding Release and Waiver Provisions
Severance agreements typically require employees to release legal claims in exchange for severance benefits. In certain situations, additional legal requirements may apply, such as waiting periods or revocation rights.
Review focuses on the scope of the release, the claims covered, and whether the agreement complies with applicable legal standards.
FAQs: Severance Agreement Review & Negotiation
Do I have to sign a severance agreement?
Employees are generally not required to sign a severance agreement, but declining to sign may affect eligibility for severance benefits. Review can help employees understand their options.
Can a severance agreement be negotiated?
In some circumstances, severance terms may be negotiable. Review can help identify which provisions may be appropriate to discuss.
How much time do I have to sign a severance agreement?
Timeframes vary depending on the agreement and applicable law. Some agreements include statutory review or revocation periods.
What claims am I giving up by signing a severance agreement?
Severance agreements often include a release of claims. Review helps clarify the scope of the release and the rights being waived.
Will severance affect unemployment benefits?
Severance pay may affect unemployment benefits depending on timing and state law. This is often an important consideration during review.
How Severance Agreements Relate to Other Employment Issues
Severance agreement review may intersect with other employment matters, including discrimination claims, retaliation concerns, contract disputes, or whistleblower issues. Review may be part of a broader evaluation of potential employment claims.
Contact Burts Law
If you are an employee reviewing a severance agreement, contact Burts Law to schedule a consultation to discuss the agreement and available options.
