Red-flag checklist
Severance Agreement Red Flags to Review
Items to verify before signing — not legal conclusions. When in doubt, have an employment attorney review the agreement.
Terms to read carefully
- Broad release of claims — what exactly are you giving up by signing?
- Non-disparagement clauses — what can and can't you say afterward?
- Non-compete or non-solicit terms — could they limit your next job?
- Short signing deadlines that pressure a quick decision.
- Language affecting unemployment eligibility or your stated reason for leaving.
- Confidentiality terms that may bar discussing the agreement.
- References policy — neutral, positive, or unspecified?
- How unvested equity, bonus, and PTO are treated.
Before you sign
- Verify every dollar figure against your own records.
- Confirm the written review period.
- Consider an employment attorney review for releases or non-competes.
- Don't sign under pressure — ask for time if you need it.
Related resources
Educational content only. LayoffNext does not provide legal, financial, tax, insurance, employment, immigration, unemployment, investment, or mental health advice. Always consult a licensed professional or official government source for guidance specific to your situation.
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