Before Signing Any Severance Agreement, You Should Know …

Employers commonly offer severance agreements in order to avoid litigation and any other legal risk related to the termination of employment. Most severance agreements contain a common set of provisions. One of these provisions (arguably the most important to the employer) is the release of claims. Simply put, this provision states that the former employee waives, to the extent permitted by law, his right to any and all legal claims or damages-whether known or unknown-the former employee may have in the present, or in the future, against the employer.

Consequently, before you sign any severance or separation agreement proffered by an employer, you should always consult an employment attorney. The attorney can help you evaluate whether it would be in your best interest to enter into the agreement as written, to negotiate for terms that are more equitable to you, or to forgo entering into any severance agreement and file an employment lawsuit. An employment attorney can be a valuable asset to you when evaluating a proffered severance agreement because the attorney will help you gauge the likelihood that you would be waiving a valuable legal claim that could accrue in the future. This sort of legal and factual analysis could provide you with a stronger basis to negotiate for more equitable terms in the agreement. The bottom line: you should always consult an employment attorney before signing any severance or separation agreement-even if the agreement is written in relatively plain and simple language.

 If you need effective and efficient legal review and counsel regarding a severance agreement your employer has offered you, please schedule a consultation today. Consultations are completely confidential. Do not rely on this post as legal advice. This post does not create an attorney-client relationship between the Firm and the reader. Do not act in reliance on the contents of this post without seeking the advice of counsel.