1. It was drafted by your employer’s attorneys. Severance agreements are complex documents that should be meticulously reviewed by an experienced employment attorney. While many of the provisions of a proffered agreement could be easily understood by a layperson, many require advanced legal knowledge. In some cases, an employer may even offer an agreement that does not comply with applicable laws. If your employer offers you anything drafted by an attorney, you may want to have your own attorney review it.

2. An employment attorney is able to explain the legal and personal ramifications of entering into a severance agreement. While the language of a proffered agreement may be straightforward, an attorney is able to help you consider the legal consequences of entering into the agreement. You may be agreeing to perform or to restrain yourself from doing certain things in order to receive the severance payment. Receiving a severance payment may seem like a good idea in the moment you receive the agreement, but having an attorney explain the long-term effects would definitely allow you to make a more informed decision.

3. You might be waiving your right to sue your employer for violating various employment laws. Almost all severance agreements have the employee waive his or her right to sue for just about any and all potential claims related to the employment relationship in order to receive the severance payment. This is the release of claims provision.

4. An employment attorney is able to negotiate a more favorable agreement than an employee without legal counsel. Employers tend to be more amenable to negotiating the terms of a severance agreement when the employee is represented by counsel. An experienced employment attorney will explore your employment relationship with your employer to determine whether there is a viable cause of action. A viable cause of action will convince most reasonable employers to offer a fair severance payment for entering into the agreement.

5. Employers rely heavily on the imbalance in bargaining power to pressure employees to enter severance agreements. It is more common for people to live paycheck to paycheck, and employers definitely capitalize on this fact. Even when there could be a viable cause of action, employees facing financial pressure view the immediate payment as more attractive than possibly having the employer withdraw the offer. However, many employers would rather secure the finality associated with an executed severance agreement than potentially having to deal with a lawsuit. Don’t let employers pressure you into signing the first agreement offered to you!

If you have any questions about severance agreements, 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.