You usually have time to review
You do not have to sign on the spot. In some cases the law requires your employer to give you time.
If you are 40 or older
In the U.S., federal law generally gives you 21 days to consider a release (45 in group layoffs) and 7 days to change your mind after signing.
Ask for the deadline in writing
Confirm the exact date your decision is due and whether it can be extended.
Do not sign under pressure
If you are told to sign today, ask for time to review. That is a reasonable request.
Track the dates
Log when you received the offer and every deadline in Wrk Receipts so nothing slips.
Understand what you are giving up
Severance is usually paid in exchange for a release. Read every section, not just the dollar amount.
The release of claims
Most agreements say you will not sue the company over your employment. Know which claims are covered.
Non-compete terms
Check whether the agreement limits where you can work next, for how long, and where.
Non-disparagement and confidentiality
These limit what you can say about the company and the agreement. Ask whether they apply both ways.
Returning property and repayment
Look for clauses requiring you to return equipment or repay bonuses or relocation money.
What you can ask for beyond the lump sum
Money is only one part of a package. Other terms can be just as valuable and sometimes easier for the company to agree to.
Health coverage
Ask whether the company will pay for COBRA, and for how long. Count it as the value of employer-paid coverage, not cash.
End date and vesting
A later end date can mean keeping retirement match or equity that would vest soon.
References and how you leave
Ask for an agreed reference and a neutral description of your departure.
Job search support
Outplacement services, a laptop buyout, or extra time on a company email can all be requested.
Get a professional review
A severance agreement is a legal contract. A second set of eyes can catch problems you might miss.
Talk to an employment attorney
Only a licensed employment attorney can advise you on the legal rights in a release. Your state bar can help you find one.
Get HR perspective
A Caged Bird HR Discovery Call can help you understand the offer, the process, and what is common to ask for.
Run the numbers
If you are on a PIP, PIP Math compares the package with staying on payroll over the same period.
Keep everything
Save every version of the agreement and related emails in Wrk Receipts.
Want guidance on your situation?
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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.