Do not sign a severance agreement without understanding what you are giving up in return. Employers are generally not required to pay you any severance. Often, however, employers offer severance pay – a few months of salary and/or health benefits – upon termination on the condition that you release and/or waive all potential legal claims that you might have against your employer. Stated another way, in return for an immediate payment of a small sum of money, the employer requires you to permanently give up your right to sue your employer and potentially obtain larger recovery later on.
To avoid such an unfair result, you should sign a severance agreement only if you understand all of the terms therein including but not limited to what you are giving up and whether what you are receiving in return is fair. In many situations, you may be entitled to much more severance pay than what is initially offered.
If you are presented with a severance agreement, we strongly advise you to speak to one of our attorneys immediately. You are not required to sign a severance agreement especially if you have strong claims against your employer.
All of the terms in a severance agreement are negotiable. Depending on the unique facts of your situation, our attorneys might be able to negotiate a better severance package on your behalf. One that gives you more compensation in exchange for the rights you are giving up. Many individuals prefer this route as opposed to pursuing litigation.
We will also help you weight the benefits of signing a severance agreement versus pursuing litigation by advising you of all of your potential claims. Armed with this knowledge, you will be able to make an informed decision for your professional future.
We represent professionals, hourly and executive level employees across all fields in negotiating severance agreements. Contact us today for for a free and confidential consultation. We look forward to hearing from you.