Whether you leave your job of your own volition or you are terminated, your employer may ask you to sign a document known as a severance agreement. Understanding its contents is very important, as it can greatly impact your future.
Although there may be financial benefits to signing the agreement presented by your employer, be aware of potential red flags.
Pay attention to the terms
The initial step is to carefully scrutinize the terms outlined in the agreement. Look out for any clauses that seem unjust or ambiguous and request clarification.
Non-compete clauses
Some severance agreements contain non-compete clauses, restricting you from working for a competing company for a specific duration. Approach these clauses with caution as they might limit your future career opportunities.
Confidentiality agreements
Another cause for concern is confidentiality agreements, which may restrict you from discussing your experiences at the company or sharing certain information. Make sure you understand the implications and consider how it could affect your job search or ability to address any concerns.
Waiving your rights
Certain severance agreements may require you to waive specific rights, such as the right to pursue legal action against the company for wrongful termination. Be cautious before agreeing to such waivers, as they could relinquish legal protections. When you have doubts about the legitimacy of your dismissal, waiving rights is a serious concern.
Seek guidance
If any aspect of the severance agreement leaves you uncertain, get help. Consider consulting a professional who can provide clarity regarding the agreement and your rights.
Feeling pressured to sign a severance agreement hastily is common. However, it is smart to take the time needed to thoroughly review the document for warning signs and ensure you comprehend its contents. If uncertainties persist, do not hesitate to ask for clarification or consult with an attorney.
