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What is a Severance Agreement

If you have been terminated, you may be offered a severance agreement (sometimes called a separation agreement).  They typically contain:

• An offer of an amount of money in severance payments, either in a lump sum or as continuation of your salary for a set period of time;
• A release of claims in which you agree to waive any legal claims you may have against the employer; and
• An agreement by you to return any company property or information.

In addition, these agreements frequently include:

• A non-disparagement provision;
• A confidentiality provision requiring you to keep the terms of the agreement confidential; and
• Reaffirmation by you of any previous non compete, non solicit, or non disclosure obligations.

If you are considering signing a severance agreement, it is a good idea to speak with an attorney first, to make sure you understand what claims you would be giving up, and what your obligations are under the agreement going forward.

Learn more here about evaluating a severance agreement.

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