Getting fired—or forced out of a job—can feel shocking, unfair, and overwhelming. When an employer hands you a severance agreement in the moment, most people feel pressure to sign quickly just to move on. But signing too fast can cost you your rights, your claims, and often significant compensation. Before you sign anything, pause and understand what’s really happening.
This guide explains what severance agreements mean, why employers offer them, the risks they contain, and how to protect yourself.
Not Everyone Is Entitled to Severance
Unless you have an employment contract, union CBA, or written policy guaranteeing severance, your employer does NOT have to offer it. When employers do offer severance, they usually do so for one of two reasons:
1. To buy silence and avoid litigation.
Employers often offer severance because they fear legal exposure—especially if you experienced discrimination, retaliation, harassment, wrongful termination, or unpaid wages/commissions. They pay for your release and your silence.
2. To be helpful or maintain goodwill.
Some employers want to support departing employees. Even then, company lawyers draft the agreement to protect the company—not you.
Either way, severance never comes as “free money.” You give up something in exchange.
If You Believe the Employer Acted Unlawfully—Save Everything Immediately!
If your termination involved any of the following:
- Discrimination
- Harassment
- Retaliation
- Whistleblower activity
- Complaints about illegal conduct
- Unpaid wages or commissions
- Medical leave issues (FMLA, disability, pregnancy, etc.)
You must protect your evidence right away. Evidence creates leverage—and leverage increases severance value.
Preserve Your Evidence:
- Save personal emails, text messages, chats, screenshots, photos, and documents.
- Keep performance reviews, schedules, calendars, HR messages, and notes.
- Write down what happened while details remain fresh—dates, witnesses, conversations, and incidents.
- Avoid deleting anything from your phone or personal accounts.
Call a lawyer as soon as your employer fires you or pressures you to resign.
Leverage Matters—And It Can Dramatically Increase Your Severance
When you have leverage, a lawyer can often negotiate significantly better severance terms. Employers rarely increase unless legal risks exist.
Examples of leverage include:
- Discrimination (race, gender, age, disability, pregnancy, religion)
- Sexual harassment
- Retaliation for reporting wrongdoing
- Whistleblower activity
- Complaints about safety, illegal conduct, or unethical behavior
- Unpaid wages, bonuses, or commissions
- Hostile work environment
Signing a Severance Agreement Waives Your Rights
Once you sign, the release is binding—even if you later discover serious legal violations. Almost all severance agreements contain a broad “Release of Claims.”
By signing, you typically give up your right to:
- Sue for discrimination or harassment
- Bring a whistleblower claim
- Recover unpaid wages or commissions
- Challenge wrongful termination
- File administrative charges (EEOC, IDHR, etc.)
- Assert claims you don’t even know about yet
Do Not Let Anyone Pressure You
You have the right to:
- Take time to review
- Request all referenced documents
- Have a lawyer evaluate the entire agreement
- Negotiate changes
- Decline to sign altogether
Watch for Hidden Restrictions That Hurt Your Career
If the agreement includes a non-compete or non-solicit clause, you must understand how it affects your career. Many employees unknowingly agree to restrictions that block them from working in their industry for years.
These clauses can severely limit your ability to work, interview, or earn income. Severance agreements often contain:
- Non-compete clauses
- Non-solicitation clauses
- Confidentiality and nondisclosure obligations
- Non-disparagement clauses
- Repayment obligations
- Agreements not to apply for future roles
- Restrictions on what you can say publicly or privately
Unclear Terms Can Be Dangerous
Vague or confusing clauses can block future opportunities, limit earnings, or trigger legal trouble later. Employers draft these agreements to protect themselves. When a term seems unclear, the company likely made it that way on purpose.
Key Questions to Ask Before Signing
Ask yourself:
- Is the severance amount fair based on your tenure and circumstances?
- Does this offer require you to give up valuable legal rights?
- How long will health insurance continue?
- Will accepting severance affect unemployment benefits?
- Do non-compete or non-solicit restrictions apply?
- What claims am I releasing?
- Does this agreement limit future employment or business opportunities?
Bottom Line: Do Not Sign Without Talking to a Lawyer
Your severance agreement affects your financial stability, legal rights, and career path. An experienced employment lawyer can:
- Identify your leverage
- Negotiate for more money
- Remove harmful restrictions
- Fix unfair terms
- Protect your legal rights
If an employer fired you, pushed you out, or pressured you to sign anything, talk to a lawyer first.
A short consultation can protect your future.
