Severance agreements, also known as separation agreements or release of claims, are contracts given to employees that are fired, laid off, or quit. Employers are typically not required to offer any severance to employees, but employers often capitalize on the opportunity to mitigate the risk of litigation by getting a terminated employee to release all claims in exchange for monetary compensation.

First, and foremost, it is important to understand the terms of any contract the employer requests the employee to sign along with the consequences of those terms. Thus, it is advisable for you to have an attorney knowledgeable in employment law review the facts of the case and the terms of the severance agreement.

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