A severance agreement is a contract or legal agreement between an employer and employee documenting the rights and responsibilities of both parties in the event of job termination. Sometimes this agreement is called a “Separation” or “Termination” agreement, and it may contain a general release and covenant not to sue.
It is important to consult an attorney to review your severance agreement not only because it can be advantageous to negotiate the terms of the agreement, but because severance agreements can contain limits on your ability to work such as non-compete agreements and can restrict your right to sue your employer in the future. To protect your rights, you should contact an attorney in your area. If you live and/or work in New York or New Jersey and require guidance with negotiating or reviewing a severance agreement, contact The Clancy Law Firm at (212) 747-1744.