Don`t Sign the Severance Agreement: A Closer Look at Your Options

When you are let go from a job, one of the first things that may come your way is a severance agreement. This is a legal document that outlines the terms of your departure, such as any severance pay or benefits you may be entitled to, as well as any restrictions on future employment or disclosure of confidential information.

While it may seem tempting to sign this agreement and move on, it is important to take a closer look at your options before doing so. Here are some reasons why you should consider not signing the severance agreement.

1. You May be Leaving Money on the Table

Severance agreements often offer payment or benefits in exchange for signing away your legal rights. However, you may be entitled to more than what is being offered. For example, if you were terminated without cause and are eligible for unemployment benefits, signing the severance agreement could affect your ability to collect those benefits.

It is important to review your employment contract and consult with an attorney to fully understand your rights and options.

2. You May be Giving up Important Legal Protections

Severance agreements may include provisions that limit your ability to sue your former employer for wrongful termination or discrimination. By signing this agreement, you are waiving your right to pursue legal action in exchange for the benefits being offered.

However, if you have reason to believe that you were terminated unfairly or experienced discrimination, it may be worth speaking with an attorney to determine your legal options.

3. You May be Limiting Your Future Job Opportunities

Severance agreements may include non-compete or non-solicitation clauses that restrict your ability to work for a competitor or pursue clients or customers from your former employer. While these clauses may seem harmless at first, they can severely limit your future job opportunities.

It is important to carefully review these clauses and consider how they may impact your career before signing the agreement.

In conclusion, while a severance agreement may seem like a quick and easy way to move on from a job, it is important to take a closer look at your options before signing. By reviewing your rights and consulting with an attorney, you can ensure that you are not leaving money on the table, giving up important legal protections, or limiting your future job opportunities.