A severance agreement can offer pay or benefits in exchange for promises such as releasing legal claims. The document may also set deadlines, limit what you can say, or affect future work options. Read every section before signing, and keep a copy of the offer and any related messages. If a term is unclear or the decision feels rushed, pause and get answers. Knowing what to check helps you weigh the package against the rights you may be giving up.
Check the compensation and benefits
Confirm the exact severance amount, payment schedule, and method of payment. Check whether the agreement describes a lump sum or continued payments, and whether payment depends on signing, returning company property, or meeting another condition. Compare the written terms with what your employer discussed. Do not rely on a verbal promise that does not appear in the agreement or a written amendment.
Review what happens to health insurance, bonuses, commissions, stock awards, paid time off, and retirement benefits. The agreement may address only some of these items, while plan documents or company policies govern others. Ask for clarification about dates and eligibility, especially if coverage or compensation may end before severance payments begin. Save benefit notices and relevant plan materials with your copy of the agreement.
Understand the promises and release
Many agreements ask you to release legal claims against your employer. Read the release closely to see which claims, people, and time periods it covers, and whether it includes claims you may not yet know about. A release can be a major tradeoff: you receive the stated benefits, but may give up the right to pursue certain claims. The scope and effect depend on the wording and applicable law.
Look for other commitments, such as confidentiality, non-disparagement, cooperation, return-of-property, or restrictions on future work. Check whether exceptions allow you to speak with a lawyer, report concerns to a government agency, or comply with legal duties. Some rights cannot be waived by a private agreement, and specific rules may apply. If a restriction seems broad or conflicts with another document, ask what it means before signing.
Track deadlines and required steps
Find the date by which you must sign, how to deliver the signed agreement, and when you can revoke your acceptance if the document provides a revocation period. Also check when the offer expires and when payment is due. Keep the envelope, email, and attachments, and record when you received them. If you need more time to review, ask in writing; do not assume the deadline has changed until the employer confirms it.
Special rules may apply to certain workers and circumstances. For example, federal age-discrimination waiver rules can require specific wording and review periods for workers age 40 or older. The details can vary based on whether an offer is individual or part of a group program. Do not assume a deadline or waiver is valid just because it appears in the document; have an employment lawyer assess the situation and applicable requirements.
Get advice before you sign
A lawyer can explain what claims the release may cover, identify unclear or unusually broad terms, and help you compare the promised benefits with what you may be giving up. Bring the full agreement, offer letter, relevant policies, performance or discipline records, and messages about the separation. Share your own priorities, such as preserving a reference, resolving unpaid compensation, or understanding future-work restrictions.
Ask practical questions: Can the employer change the terms? Does the release cover a dispute already raised? Are payment and benefits described clearly? Could another agreement still apply? Advice is especially valuable when you have a pending complaint, unpaid wages, discrimination or retaliation concerns, or a tight signing deadline. Do not sign blank or incomplete pages, and request a fully signed copy after the agreement is final.
Before signing, confirm the payment, benefits, release, restrictions, and deadlines in writing. A careful review can help you understand the tradeoffs and spot questions while there is still time to raise them. If you want guidance on a severance agreement, contact Alamo Work Law to discuss your options.