The short answer
Do not sign on the spot. Check what you are getting, what you are giving up, and how long you have to decide. Many terms are negotiable, and if you are 40 or older, federal law generally gives you at least 21 days to review and 7 days to change your mind after signing.
- Confirm the decision deadline and ask for more time if you need it.
- Look beyond the dollar amount at benefits, references, and restrictions.
- HR support can help you negotiate. Only an attorney can give legal advice on the release.
What people often miss
Severance agreements are written by the employer. The details that matter most are not always on the first page.
The benefits gap
Nina’s package paid eight weeks of salary, but her health coverage ended the last day of the month. She had not budgeted for COBRA.
The broad non-disparagement clause
Omar’s agreement barred him from saying anything negative about the company, with no matching promise from them about him.
The missed commission
Beth signed before realizing her final quarter of commission was not included in the payout.
What to check before you sign
Go through the agreement line by line with these questions.
Compensation
How much, paid when, and is it a lump sum or continued pay? Does it include earned bonus, commission, and unused PTO?
Benefits
When does health coverage end? Will the company pay toward COBRA? What happens to equity and unvested retirement match?
Deadlines
How long do you have to sign and to revoke? If the window is short, ask in writing for more time.
The release and restrictions
What claims are you giving up? Are there non-compete, non-solicit, confidentiality, or non-disparagement terms? Are they mutual?
Your exit story
Ask for an agreed reason for leaving and a neutral reference. Save every version and email in Wrk Receipts so you can track what changed.
HR negotiation support vs. legal review
These are different kinds of help, and many people benefit from both. Consider support if:
- You think the offer is low for your role or tenure.
- You are unsure what is negotiable and what is standard.
- You believe you may have a claim against your employer.
- There are restrictions that could affect your next job.
Caged Bird HR helps with the HR side: understanding what is typical, deciding what to ask for, and preparing how to ask. We do not review contracts for legal risk or advise on claims you may be waiving. For that, talk to an employment attorney before you sign.
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Caged Bird HR is not a law firm. This guide is general HR information, not legal, tax, or financial advice, and reading it does not create a consultant or attorney relationship. Laws and deadlines vary by state. For legal advice about your situation, talk to a licensed employment attorney.