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Home Q&A Forum Are employee separation agreements required?
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Employment

Employee Separation Agreement

California

Asked on May 23, 2023

Are employee separation agreements required?

I recently left my job after two years of employment and my former employer has asked me to sign a separation agreement. I am unsure if I am legally obligated to sign this agreement or if employee separation agreements are required by law. I am hesitant to sign the agreement until I have a better understanding of my rights and obligations.

1 Attorney answer

Answer

Employment

California

Answered 324 days ago

Gagandeep K.

ContractsCounsel verified

Business Lawyer
Licensed in California
Free Consultation

When an employee leaves a company, an employer can offer severance agreement/separation agreement/termination agreement, where employer offers a severance package to the employee (e.g., lump sum money, extended benefits) in exchange for limiting their liability (e.g., release of certain legal claims, confidentiality provisions). An employee can decide whether to accept the severance agreement as-is, whether to negotiate for more favorable terms or to reject the offer. You may consult an attorney to review the severance agreement to understand your rights, obligations, the benefit you are receiving, and the claims you are waiving.

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