My employer gave me a severance agreement — should I sign it?
The short answer
Whether signing makes sense depends on what the agreement actually contains — the severance amount and structure, the scope of the release of claims, any restrictions (non-compete, non-disparagement, confidentiality), and any benefits like a COBRA subsidy or neutral reference commitment. None of those terms are standard; they vary by employer and situation. The agreement you were given is the document to read: what it offers, what it takes away, and what it requires of you going forward. Scan the clause language to see what you are agreeing to before the consideration period closes.
What Dang reviews here: Dang reviews the clause language in your severance agreement — what the release, non-compete, arbitration, and non-disparagement terms say and what to ask about them. It does not verify wage, hour, or leave compliance.
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What a severance agreement usually contains
A severance agreement typically covers: the severance amount and how it is paid (lump sum or installments), the release of claims you are signing (what legal claims you waive), any ongoing restrictions (non-compete, non-solicitation, confidentiality of the agreement's terms), and sometimes additional items like a COBRA subsidy, outplacement, equity treatment, or a reference clause. The release of claims is often the clause people focus on last — but it is usually the most consequential part of what you are agreeing to.
Agreements also commonly include a non-disparagement clause (limiting what you say about the employer), an arbitration clause, and sometimes a cooperation clause requiring you to assist with future litigation. Whether the package is worth accepting depends on what all of those terms say together, not just the dollar figure.
Why people worry
The pressure of a deadline, the stress of job loss, and the unfamiliarity of legal language combine to make this decision harder than it looks. Common worries: signing away rights you did not know you had, accepting terms that could block future employment, or discovering later that the severance was far below what others in similar situations received. The time pressure is real, and the agreement often arrives with language designed to look final.
What to look for in your agreement
- The total severance amount, how it is structured, and whether it is contingent on anything after signing.
- The release clause: which claims you are giving up and whether the language is broad or targeted.
- Post-employment restrictions: non-compete, non-solicitation, and non-disparagement scope and duration.
- Health insurance: whether a COBRA subsidy is included and for how long.
- Any equity, bonus, or commission treatment — whether outstanding amounts are addressed.
Questions to ask before signing
- Ask the employer whether any terms are negotiable — amount, release scope, non-compete removal.
- Ask the other party to clarify any clause you do not understand before the deadline.
- Confirm the consideration period and whether the agreement gives you enough time to review it before signing.
- Consider having the agreement reviewed before signing if the release is broad or the restrictions are significant.
Why scan instead of guess
The general rule tells you the baseline. Your offer tells you what you’re actually being asked to sign — and the wording is what binds. Dang reads the document and flags the clauses worth reviewing, in plain English.
The deterministic engine scores and decides what’s risky. The AI only enriches the plain-English wording — AI extracts, code decides, never the other way around.
Your original file is deleted promptly after processing — we keep only the report you can read. No account needed for a one-time scan. Free preview first; full report $6.99, one-time.
Common questions
Is it normal to negotiate a severance agreement?
Many employees treat severance agreements as negotiable, and employers often expect counteroffers — on amount, restrictions, COBRA coverage, or reference terms. What is on the table depends on the situation and the employer.
What happens if I do not sign?
You generally keep whatever rights you have not waived, but you would not receive the severance pay or other benefits the agreement offered. Whether those benefits are worth the waiver is the decision the agreement asks you to make.
No account required · File deleted after analysis · Not legal advice. Dang reports contract findings in plain English — general information, not legal advice about your situation. For consequential decisions, consult a licensed attorney in your state.