Be Vigilant about Proposed Offers of Severance

To persuade you to sign one of these agreements, your employer might tempt you with severance pay, extra severance pay, or a substantial overall package. Unfortunately, due to the vulnerability (emotional and financial) that accompanies these situations, many employees just take the money on the table without a negotiation. They don’t realize that the severance agreement is binding and effectively relinquishes their right to ever sue the employer upon accepting, acknowledging, and signing the severance agreement.

As soon as you are handed such an agreement, schedule a consultation with us. We can advise you on whether the agreement contains all the terms necessary to protect your interests and evaluate the leverage you may have for negotiating a higher severance pay. Contrary to what Human Resources or your boss may tell you, you are never required to sign such an agreement immediately.

Protect Yourself before Signing

The employer should give you a reasonable amount of time to consider the severance offer, including time to contact an attorney to review it. If the employer refuses to increase the value of your severance package, you may decide that it is best not to sign the agreement in order that you keep open your right to pursue legal action against your employer.

You always have the option of retaining counsel to negotiate an enhanced separation package on your behalf. You have much to gain by this approach because an experienced attorney can provide you with the expertise and insight you need to bring your employer to the table in a manner that is satisfactory to you. If at the conclusion of the negotiations, you feel you would be better off declining to sign it, you may decide to vindicate your rights in court or in another forum.