Separate what you already earned from the severance offer
A severance agreement usually offers compensation or benefits in exchange for a release of claims and other promises. Start by separating wages, commissions, expenses, paid time off, or benefits that may already be owed from the additional consideration offered for signing.
Confirm the payment amount, method, timing, tax treatment described in the agreement, and what happens if the employer pays late. If benefits continuation is part of the package, identify the exact coverage period and who pays the premium.
Read the release as carefully as the payment term
The release may cover known and unknown claims through the signing date. Note which parties are released, which laws are named, whether claims after signing remain available, and whether the agreement tries to limit agency participation or other rights that cannot lawfully be waived.
If you are age 40 or older, federal law imposes specific requirements on waivers of age-discrimination claims. The rules can include written advice to consult counsel, consideration periods, revocation periods, and additional disclosures in certain group programs.
List every continuing obligation
Some of the most important terms operate after the payment is made. Mark each clause that controls future conduct and ask what happens if the employer alleges a breach.
- Confidentiality and nondisclosure language
- Nondisparagement and cooperation obligations
- Noncompetition, nonsolicitation, and return-of-property terms
- Reference language, rehire status, and benefit administration
- Clawback, indemnity, liquidated-damages, or fee-shifting provisions
Check the deadline and negotiation posture
Do not assume the date in the cover email is the only deadline that matters. The agreement may have a consideration period, a separate expiration date, and a revocation window. Ask for clarification in writing if the dates conflict.
A request for more time or different terms is a negotiation. It may affect the offer, so decide what matters most before responding: compensation, benefits, reference language, restrictions, or the treatment of a potential legal claim.
Review the facts behind the separation
The value and risk of the agreement depend partly on the claims being released. Before signing, organize the timeline, recent reviews, complaints or accommodation requests, termination explanation, and comparison evidence. Counsel can then evaluate the agreement and the underlying separation together.
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