Estimated reading time: 10 minutes

Key Takeaways

• Review every clause line-by-line to understand obligations, restrictions, and benefits.

• Get legal help — a severance negotiation attorney can spot risks and negotiate better terms.

• Prioritize payment and benefits while narrowing restrictive covenants and waivers.

• Use a checklist before signing to ensure verbal promises are in writing and waivers are reasonable.

• Enforce promptly if the employer breaches—start with a demand letter and prepare for litigation if needed.

Table of Contents

• I. Introduction — severance agreement review

• II. Why It Matters — severance agreement review

• III. Your Advocate — severance negotiation attorney

• IV. Step-by-Step — negotiate separation agreement

• V. Get Help When It Counts — severance pay legal help

• VI. If They Don’t Pay — enforce severance agreement

• VII. Before You Sign — sign severance release

• VIII. Conclusion — protect yourself with a severance agreement review

• Appendix: What to Look For in Each Clause (Quick Reference)

I. Introduction — severance agreement review

A severance agreement review is the single most important step you can take before you sign a severance release. It protects your rights, your future job options, and your financial security.

A severance agreement is a legally binding contract between an employer and an employee that outlines the terms of employment termination. It commonly covers severance pay, benefits continuation, confidentiality, and each side’s rights and obligations View resource; View resource; View resource; View resource.

When you sign a severance release, you usually agree to a waiver of claims in exchange for money or benefits, which can be permanent and enforceable View resource; View resource.

Signing without a thorough severance agreement review can be risky. Agreements often include broad liability waivers, non-compete clauses, confidentiality obligations, non-disparagement terms, and other restrictions that limit your future employment and legal options View resource; View resource. These terms can affect your ability to work in your field, speak about your experience, or pursue valid legal claims.

A severance negotiation attorney can guide the review, explain legal jargon, and negotiate stronger protections and better terms for you View resource. With counsel, you can maximize your severance package and reduce risk.

Sources: View resource; View resource; View resource; View resource; View resource

II. Why It Matters — severance agreement review

A severance agreement review means a line-by-line assessment of the contract. The goal is to understand every obligation, every restriction, and every benefit before you commit.

What a severance agreement review covers

• Severance pay: Amount, timing, form (lump sum vs. installments), conditions, and whether bonuses, commissions, or unused PTO are included.

• Benefits continuation: Health insurance (e.g., COBRA), life insurance, retirement plan contributions, and the duration of any coverage.

• Waivers and releases: Which legal claims you release, how broadly, and whether unknown or future claims are covered.

• Post-employment restrictions: Non-compete Learn more here, non-solicitation, confidentiality (NDA), non-disparagement, and cooperation clauses.

• Return-of-property and transition duties: Equipment return, document certification, and passwords; cooperation in audits or litigation.

• Reference and rehire terms: Neutral reference language, how inquiries are handled, and eligibility for rehire.

• Taxes and logistics: Withholding, tax characterization, payment method, and any clawback triggers.

• Unemployment eligibility interactions: Whether the agreement affects your ability to claim benefits in your state.

This review scope mirrors what experienced employment counsel checks when advising employees on separation agreements View resource.

Common pitfalls to avoid

• Broad waivers you do not understand: Many releases cover known and unknown claims, which can wipe out future legal rights you might later uncover View resource; View resource.

• Overreaching restrictive covenants: Sweeping non-compete or confidentiality provisions that damage your future career prospects View resource; Learn more here.

• Overlooking references, unemployment, or tax implications: Not clarifying how HR will respond to reference checks, how unemployment might be affected, or whether payments will trigger unexpected taxes View resource; View resource.

• Hidden obligations in legal jargon: Clauses about cooperation, non-disparagement, or repayment obligations that are easy to miss View resource.

Why it has real legal consequences

• Signed releases are typically enforceable. In most cases, once you sign a severance release, you waive your ability to bring claims, including discrimination or wrongful termination claims, and that waiver is final View resource; View resource.

• Employers commonly condition payment on a broad release. You must know exactly which rights you are trading for which benefits View resource.

Bottom line: Review with legal counsel before you sign severance release. Doing so can prevent irreversible mistakes and improve your package.

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III. Your Advocate — severance negotiation attorney

A severance negotiation attorney is your best tool for turning a standard form into a fair deal View resource. They combine legal risk spotting with leverage-driven negotiation.

How a severance negotiation attorney runs a severance agreement review

• Issue spotting: Identify clauses that are one-sided, overbroad, or risky, such as expansive confidentiality, non-disparagement, or non-compete provisions View resource.

• Prioritizing improvements: Advise where to focus—severance pay, benefit extensions, and trimming or removing restrictive covenants View resource.

• Clarifying legal jargon: Translate complex terms and explain hidden obligations and timelines in plain language.

• Aligning with norms: Compare your offer to market practice and, where helpful, to your state’s laws and industry standards.

Typical attorney negotiation points

• More severance pay: Increase total dollars, add bonus or commission true-up, include PTO payout if applicable.

• Extended benefits: Longer health coverage, employer-paid COBRA contributions, and retirement plan contributions where negotiable.

• Narrowed restrictions: Shorter non-compete periods, limited geographic scope, clear carve-outs for broad confidentiality, and fair non-disparagement with mutuality.

• Better references: Neutral reference letters, agreed-upon language, and a point of contact for future inquiries.

• Payment protections: Clear payment schedule, default interest for delays, and no clawbacks except for defined, material breaches.

• Practical terms: Expanded time to consider and revoke, reimbursement for legal fees, and reasonable cooperation obligations.

How attorneys protect and enforce severance agreements

• They serve as your advocate in discussions and in writing. Employers are more likely to modify terms when they know you have counsel.

• If the employer later breaches, an attorney can move to enforce severance agreement terms through demand letters and, if needed, litigation for breach of contract View resource.

Examples of improved outcomes with counsel

• A manager’s initial offer: Eight weeks’ pay, six weeks of COBRA, and a broad non-compete. After counsel’s negotiation, the final deal included 16 weeks’ pay, 12 weeks of employer-paid COBRA, and the non-compete was removed in favor of a narrow non-solicitation. This aligns with what seasoned employment lawyers identify as attainable improvements when terms are overbroad View resource.

• A sales employee’s package: Installment payments with a clawback for “disparagement.” Counsel obtained lump-sum payment, mutual non-disparagement with carve-outs for legal compliance, and a neutral reference, reflecting common negotiation goals highlighted in practical guides View resource.

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IV. Step-by-Step — negotiate separation agreement

Use a calm, structured process to negotiate separation agreement terms. Treat it like a business negotiation View resource backed by legal advice.

Your negotiation roadmap

• Read everything, then list concerns: Flag each clause that seems unclear, broad, or unfair. Note every obligation and timeline View resource.

• Prioritize your goals: Identify what matters most—total pay, bonus treatment, benefits length, scope of non-compete, and non-disparagement terms View resource.

• Ask for clarity: Request plain-English explanations of legal jargon and any undefined terms. Ambiguity is your enemy View resource.

• Don’t rush: Ask for adequate time to review, especially if the agreement is complex. Do not accept artificial pressure to “sign by tomorrow” View resource.

• Leverage your facts: Use tenure, performance, achievements, or transition support you’ve provided to justify better terms. Show how your requests help both sides finalize a clean break View resource.

• Put revisions in writing: Send a concise redline or a bullet-point list of requested changes. Keep communications professional.

• Use expert help: Engage a severance negotiation attorney to present your case and handle pushback with legal reasoning and market context View resource.

What to negotiate (specific examples)

• Severance pay: Increase weeks/months of pay. Push for lump-sum payment to avoid payment risk. Include commission true-ups or prorated bonus.

• Benefits: Extend employer-paid COBRA or provide a taxable stipend for coverage. Keep life and disability insurance for a defined period if employer can offer it.

• Restrictive covenants: Remove non-compete if not necessary. If it must remain, reduce the length and territory, carve out passive investments, and clarify that you can work in your profession with reasonable limits. Narrow confidentiality to true trade secrets and non-public data. Make non-disparagement mutual with clear exceptions for legal compliance.

• Claims and waivers: Tighten release language to the severance period and known claims if possible. Clarify that you retain rights that cannot be waived by law.

• Practicalities: Neutral reference letter, internal communication script, agreed reason for separation, no admission of fault, rehire eligibility, and a single point of contact for verification calls.

• Process protections: 10–21 days (or more) to consider, ability to revoke within a set period (if applicable by law), company covers reasonable attorney’s fees for the review.

Why a lawyer’s presence matters

• Employers expect negotiation on these agreements. Having counsel signals you are serious and informed.

• A lawyer can reframe asks from “demands” to standard risk management tweaks. This often unlocks better outcomes and a smoother process View resource; View resource.

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V. Get Help When It Counts — severance pay legal help

You need severance pay legal help when the offer feels off, the language is confusing, or the employer adds pressure to sign fast View resource. Early legal input can dramatically change your outcome.

When to seek legal help immediately

• Unfair or unclear pay terms: Low amount, delayed installments, or missing bonus/commission payouts. Ambiguity creates risk.

• Complex compensation: Equity vesting, RSUs, stock options, deferred comp, or clawback triggers that you do not fully understand.

• Broad or unusual waivers: Releases that attempt to cover unknown claims or future conduct.

• Pressure tactics: Unreasonable signing deadlines or threats of withdrawing the offer.

• Eligibility disputes: Employer claims you are not entitled to severance due to “cause” or policy exceptions.

• Payment or benefits disputes: Unpaid or delayed severance, denial of promised benefits, or disagreement over COBRA coverage length.

How a severance negotiation attorney intervenes

• Direct employer communication: Counsel can contact the company or its lawyer, present your position, and propose a revised agreement in legal terms the other side respects.

• Targeted revisions: Clarify payment schedules, tighten waiver language, and adjust restrictive covenants to a reasonable scope View resource.

• Strategic leverage: Where appropriate, counsel can explain your potential claims and risks to the employer if a fair deal is not reached.

• Enforcement readiness: If the employer fails to honor agreed terms, counsel can enforce severance agreement obligations through a demand letter or litigation View resource.

Common severance pay disputes and solutions

• Unpaid or late payments: Demand letter citing breach and setting a cure period. If ignored, file a breach of contract action seeking damages and interest.

• Ambiguous wording: Negotiate clarifying amendments or side letters to remove interpretive disputes before signing.

• Benefits disagreements: Confirm benefit terms in the agreement itself, including length, cost-sharing, and what happens if you get a new job.

If the employer breaks the deal

• You can pursue breach of contract remedies, seek damages, and request the court to order compliance (equitable relief) where appropriate View resource.

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Sources: View resource

VI. If They Don’t Pay — enforce severance agreement

When an employer breaches a signed agreement, act fast and follow a clean enforcement path.

What to do if the employer breaches

• Send a formal demand: Deliver a written notice describing the breach, citing the specific clause, and giving a short deadline to cure. Include the payment amount due or the benefit that must be restored.

• Prepare for litigation: If they refuse or stall, your next step is a breach of contract suit seeking damages, interest, and, when available, attorney’s fees.

• Seek equitable relief: In the right case, courts can order the employer to do what they promised—such as issuing a corrected reference or reinstating benefits View resource.

How a severance negotiation attorney helps you enforce severance agreement terms

• Legal strategy: Evaluate your strongest claims and remedies. Choose between negotiation, administrative remedies (where applicable), or filing in court.

• Representation: Handle all communications, settlement talks, and court filings. Preserve your rights and avoid missteps.

• Proof and documentation: Build a clear record—agreement, emails, pay stubs, benefits notices—that supports your enforcement claim.

Realistic enforcement scenarios

• Missed installment payment: Employer delays the second month of severance by 30 days. Counsel sends a demand with default interest and a cure date. Payment resumes, plus interest, avoiding litigation.

• COBRA coverage lapse: You were promised three months of employer-paid premiums, but HR fails to process payment. Counsel demands immediate reinstatement and reimbursement. Employer complies after counsel cites breach exposure.

• Reference language change: Agreement mandates a neutral reference, but a manager provides negative commentary. Counsel documents the breach and requests corrective measures, including a company-wide HR directive. Employer issues written confirmation and attaches the agreed reference letter to your file.

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Sources: View resource

VII. Before You Sign — sign severance release

Use this actionable checklist before you sign severance release documents. Move slowly, stay organized, and seek counsel.

Step-by-step checklist

1) Read every clause deliberately
Do not rush. Highlight payment amounts, timelines, definitions, and any “default” or “clawback” language.

2) Match the paper to the promises
Make sure all verbal promises—like neutral references, health insurance, or bonus payouts—appear in writing.

3) Identify all waivers and restrictions
List every right you are releasing. Flag restrictive covenants—non-compete, non-solicitation, confidentiality, non-disparagement—and note their length and scope View resource; View resource.

4) Assess severance pay and benefits sufficiency
Check lump-sum vs. installments, taxes, bonus/commission treatment, unused PTO, and benefits continuation terms View resource.

5) Verify ongoing obligations are reasonable
Look for cooperation clauses, return-of-property certifications, and limits on what you can say or do post-employment.

6) Get clarity on anything unclear
Ask for definitions or plain-English explanations of legal terms. Ambiguity usually favors the drafter.

7) Consult a severance negotiation attorney
Have an attorney conduct a severance agreement review, spot risks, and propose concrete revisions View resource; View resource.

8) Never sign without legal review
Once you sign, waivers are generally enforceable, and you may permanently lose your ability to bring claims View resource; View resource.

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VIII. Conclusion — protect yourself with a severance agreement review

A thorough severance agreement review puts you in control. It helps you understand the trade-offs, protect your legal rights, and secure better pay and benefits before you sign severance release documents.

Severance agreements contain binding waivers and ongoing obligations that can be hard—or impossible—to undo later. Many include broad releases, confidentiality and non-disparagement provisions, and restrictions that may affect your next job. Once signed, these terms are usually enforceable View resource; View resource.

A severance negotiation attorney is essential. Counsel can negotiate stronger severance pay, extend benefits, narrow restrictive covenants, and enforce severance agreement terms if your employer breaches. This support reduces risk and improves results View resource; View resource.

If you are evaluating a separation package right now, get severance pay legal help before you decide. Do not go it alone. Your career and your financial future deserve careful, professional protection.

Call to action

Get a free and instant case evaluation by US Employment Lawyers. See if your case qualifies within 30 seconds at View resource.

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Appendix: What to Look For in Each Clause (Quick Reference)

Use this as a rapid checklist during your severance agreement review. It reinforces the steps above with more detail and synonyms to help you spot issues quickly.

Severance pay

• Amount: Weeks or months of base pay; consider tenure and role.

• Form: Lump sum vs. installments; negotiate for lump sum to reduce risk.

• Add-ons: Bonus, commission true-up, PTO payout, expense reimbursements.

• Triggers and conditions: Any “for cause” or “breach” triggers that stop payment.

Benefits continuation

• Health insurance: COBRA length, employer-paid portion, or stipend.

• Retirement: Vesting implications, employer contributions underway.

• Other benefits: Life/disability insurance, outplacement, career coaching.

Release of claims (waiver)

• Scope: Which statutes and claims; confirm it is not overbroad.

• Known vs. unknown: Watch for language that waives unknown claims.

• Carve-outs: Rights that cannot be waived by law; ability to cooperate with authorities.

Restrictive covenants

• Non-compete: Duration, geography, and job scope; push to remove or narrow.

• Non-solicitation: Clarify whether it covers clients, prospects, vendors, or employees.

• Confidentiality (NDA): Limit to actual trade secrets and proprietary information; exclude public domain info and your general skills and knowledge.

• Non-disparagement: Make it mutual; add exceptions for legal compliance and truthful statements under oath.

• IP and inventions: Ensure it does not overreach beyond your employment period.

Cooperation and return of property

• Scope and timing: Reasonable requests, scheduled in advance, no open-ended duty.

• Costs: Reimbursement for time and expenses.

• Property: Define what must be returned; set a date and method.

References and communications

• Neutral reference: Name, title, dates only, or agreed script.

• Internal and external messaging: Align on how the separation is described.

• Rehire status: Clarify eligibility.

Payment logistics and tax

• Timing: Exact dates for payment.

• Method: Check vs. direct deposit; who handles withholding.

• Tax language: Avoid vague statements about tax “characterization” that could create surprises.

Dispute resolution

• Governing law and venue: Where disputes are resolved.

• Attorney’s fees: Seek mutual fee-shifting or employer coverage for review costs where possible.

This quick reference supports your ability to negotiate separation agreement terms that are specific, fair, and enforceable. For the most reliable outcome, pair this checklist with targeted advice from a severance negotiation attorney before you sign.

FAQ

What is a severance agreement review?

A severance agreement review is the single most important step you can take before you sign a severance release. It protects your rights, your future job options, and your financial security by assessing every obligation, restriction, and benefit in the contract.

When should I get legal help with a severance offer?

You need severance pay legal help when the offer feels off, the language is confusing, or the employer adds pressure to sign fast. Seek counsel for unfair pay terms, complex compensation, broad waivers, pressure tactics, eligibility disputes, or payment and benefits disputes View resource.

Can I enforce a severance agreement if my employer doesn’t pay?

Yes. Start with a formal demand that cites the breach and gives a cure deadline. If the employer refuses or stalls, prepare for litigation seeking damages, interest, and attorney’s fees, and consider equitable relief where appropriate View resource.

What should I prioritize in negotiations?

Focus on severance pay (amount and form), benefits continuation (COBRA, life/disability), narrowing restrictive covenants, clear waiver language, neutral references, and process protections like sufficient review time and legal fee reimbursement.

Are signed severance releases enforceable?

Yes. Signed releases are typically enforceable and can permanently waive your ability to bring certain claims. Always review with legal counsel before you sign to avoid irreversible mistakes View resource; View resource.