What to Think About Before You Sign One, and
Why You Might be Able to Get One Even if it Isn’t Offered
By Donna Ballman, P.A. Employment Law
When I represent terminated employees, many of them have been presented with severance agreements that they ask me to review for them. Many more have not been offered severance, but may be able to receive it if they know how to ask. What should you do if you’ve been fired, laid off, or made redundant, before you sign a severance agreement? And what should you do if severance is not offered? Here are some things to consider.
- If severance is offered, make sure an attorney reviews the agreement. You may be giving up rights you have not considered, or may be agreeing to something that will cost you more than the amount of severance.
- Do you have a pension? How is it dealt with in the agreement? Many agreements contain releases that include releases under ERISA, which is the law that governs pensions. Make sure you are not accidentally giving up your pension rights. If you had an employer-matched 401 and are not vested, you are probably giving up the employer contribution to your 401. » Read more: Career Tips: Severance Agreements
