So, you received a severance agreement after losing your job. That’s overwhelming, to say the least.
There’s already a lot for you to think about – from finding your next position to figuring out how you’re going to manage financially. When your former employer puts a severance agreement in front of you, it’s tempting to just sign it, take the money, and put the whole situation behind you.
But before you sign anything, take a breath. Pause.
A severance agreement isn’t just a document. It doesn’t just confirm how much money you’ll receive. It could contain conditions that affect your rights, your future employment, and what you can and can’t do after leaving the company.
Take a little time to understand those terms. Doing so will save you from problems down the road. Keep reading to learn more.
You Could Give Away What You Are Owed
The severance amount your employer offers isn’t necessarily the end of the conversation.
Depending on your circumstances, you may be owed other money. Unpaid wages. Bonuses. Commissions. A severance agreement might also require you to give up the right to make certain claims against your former employer.
That’s an important trade-off. You’re agreeing to give up something in return for compensation being offered. You need to know exactly what the trade-off looks like.
It’s tough to think clearly about these things when you’re dealing with the stress of doing your job. That’s one reason it pays to slow down. This gives you the time to look at the agreement carefully.
There Might Be Restrictive Covenants
There’s typically more to a severance agreement than the amount of money being offered.
Read the sections dealing with what you’re expected to do after you leave. You might find:
- Confidentiality requirements,
- Non-solicitation provisions,
- Non-disparagement clauses,
- Or other restrictions.
Some of these terms may seem harmless at first. But if you’re planning to work for a competitor, start your own business, contact former clients, or simply speak openly about your experience, the wording matters.
You don’t want to discover six months later that you agreed to something you didn’t fully understand at the time.
It Prevents You From Consulting a Professional
Once you’ve signed a severance agreement, your options are… limited. Before signing, though, you have an opportunity to get another perspective.
Having someone familiar with employment agreements review the document helps you understand the fine print. They’ll be able to identify anything that deserves further discussion. If you’re looking for severance review help in Oakland, for example, get professional input before signing. That’s just sensible.
You don’t have to assume your employer is trying to take advantage of you. In fact, you shouldn’t do this. A review is simply a way to ensure you understand the deal you’re being asked to accept.
To conclude, a severance agreement is more than a piece of paperwork. You don’t rush to get it out of the way. Instead, take your time to read everything carefully and get advice. This will ensure you make the right decision for you.