A severance agreement can feel like paperwork to sign quickly on the way out the door, but it's a binding contract — and it usually asks you to give something up in exchange for the payout being offered.
The release of claims is the core exchange
Most severance agreements require you to release the employer from legal claims — discrimination, wrongful termination, wage disputes — in exchange for the severance payment. Understanding exactly what claims you're giving up is the most important part of reviewing one.
Review periods and revocation rights
Federal law gives employees over 40 a minimum review period and a revocation window for agreements that release age discrimination claims — a protection that's easy to overlook under pressure to sign quickly.
Non-disparagement and confidentiality clauses
Many severance agreements include clauses restricting what you can say about the company, or requiring confidentiality about the terms of the agreement itself. These are negotiable more often than people assume, especially for longer-tenured employees.
It's worth a review before you sign, not after
Once signed, a severance agreement is difficult to unwind. Having it reviewed before signing — while there's still room to negotiate specific terms — is the point where it actually matters, not after the payout has already been accepted.