Why You Should Consult with a Lawyer Before Signing a Severance Agreement

Leaving a job can be difficult, especially when it is not your choice to do so. During this time, you might be dealing with intense emotions and serious worries about your financial future. If your termination includes an offer of a severance agreement, you might feel compelled to sign it promptly, especially if the consideration provided addresses your immediate money concerns. You could also be motivated by a desire to resolve things with your former employer once and for all. 

According to some experts, signing a severance agreement before reviewing it with an attorney is the biggest mistake people make when they leave a job. Though the payment you receive after accepting the severance offer might be welcome at time, there could be many unexpected and unpleasant consequences later. Many of these documents include restrictive language about your ability to file a lawsuit and take another position within the same industry. 

Speaking with a qualified lawyer will help you gain a true understanding of your negotiating position. Severance agreements don’t have to be a “take it or leave it” proposition. Your attorney can examine your work history, performance reviews and evidence of possible illegal discrimination. Even the fact that you’ve hired an employment lawyer to represent your interests could motivate your employer to increase their severance offer or remove certain restrictions. 

Another advantage of retaining counsel is that they can analyze the agreement to assess whether it contains any legal traps. You could be prohibited from reporting misconduct to government authorities. Some companies draft severance agreements with liquidated damages clauses that impose heavy penalties on someone who is deemed to disparage their former employers. In some cases, strict arbitration provisions bar individuals from having their case heard in court. An experienced attorney will spot and propose precise edits — for example, narrowing release language, removing unlawful confidentiality requirements, or limiting the geographic/scope reach of restrictive covenants.

At Kardell Law Group, our attorneys help clients navigate this process strategically and effectively to achieve the best possible outcome. If you’ve been offered a severance agreement, don’t sign it yet. Contact our firm for a confidential review and personalized negotiation plan to protect your rights, your finances and your future career.