Severance Agreements: Questions to Ask Before You Sign

A severance agreement is a contract. In exchange for payment or other benefits, an employee typically agrees to certain terms — most importantly, a release of legal claims against the employer.

Why Review Matters

Once signed, a severance agreement can be difficult to undo. Understanding it beforehand helps you make an informed choice.

Questions to Consider

What claims am I releasing?

Most agreements include a broad release. Consider whether you may have potential claims — such as for unpaid wages, discrimination, or retaliation — before agreeing to release them.

Is the amount reasonable given my circumstances?

There is no universal formula for severance. Your role, tenure, and the circumstances of your separation may all be relevant.

What other obligations does it impose?

Look for confidentiality, non-disparagement, cooperation, and non-solicitation provisions, and understand what each requires of you.

How long do I have to decide?

Many agreements include a review period. Use that time to ask questions and, if appropriate, seek legal guidance.

Negotiation Is Sometimes Possible

In some situations, terms can be discussed. Whether negotiation is appropriate depends on the facts of your separation.

Kiwan Law assists employees in reviewing and negotiating severance agreements. Outcomes vary, and past results do not guarantee a similar result in any future matter.