Home Q&A Forum How to draft a severance agreement?

Employee Benefits

Severance Agreement

California

Asked on May 31, 2023

How to draft a severance agreement?

I recently accepted a severance agreement from my employer in order to leave my job. I would like to know how to draft a severance agreement to ensure that all of my rights and entitlements are included and that the agreement is legally sound. I want to make sure that I am fully aware of the terms and conditions of the agreement before I sign it.

Answers from 1 Lawyer

Answer

Employee Benefits

California

Answered 1053 days ago

Typically, your employer drafts a severance agreement for employee's review and acceptance, and the employee may negotiate the severance agreement. A severance agreement generally contains severance pay, post-employment benefits (e.g., healthcare or 401K), release of certain claims/liability, non-compete, non-disclosure/confidentiality, return of company property, and other provisions. An employee should review the severance agreement carefully to ensure the scope of each provision and the limitations placed on the employee are valid, as this is a legal document and it may impact future employment opportunities. You may want to have an attorney review the severance agreement before signing it to make sure it complies with legal requirements and protects your rights as an employee. You can read more about severance agreements here: https://www.contractscounsel.com/t/g/us/employee-separation-agreement/11 or https://www.contractscounsel.com/t/g/us/severance-agreement/11.

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Severance agreement and unemployment benefits?

I recently accepted a severance package from my employer after they eliminated my position. I am concerned about how this severance agreement may affect my ability to receive unemployment benefits and I would like to understand my rights and obligations in this situation. I am hoping to find out if I am still eligible to receive unemployment benefits and, if so, what is the process for filing a claim.

5.0 (1)

Gagandeep K.

Answered Jun 30, 2023

In California, you can apply for, and if eligible, collect unemployment benefits even if you received severance pay. Severance pay is a payment for past work so it is not considered wages for unemployment benefits purposes under certain circumstances. However, the California Employment Development Department will evaluate the amount of unemployment benefits you are eligible to receive and may reduce such benefits by the severance pay you receive. You may consider having an attorney review your severance agreement and answer any additional questions.

Read 1 attorney answer>

Contracts

Severance Agreement

California

Asked on Jul 21, 2023

Can a severance agreement be digital?

I recently accepted a voluntary severance package from my employer and have been asked to sign a severance agreement. I am curious if this agreement can be signed digitally, as I am not currently in the same city as my employer. I am looking for advice on the legalities of digital agreements and any potential risks associated with signing a severance agreement digitally.

View Christina M.

5.0 (12)

Christina M.

Answered Jul 27, 2023

In 1999 the California Legislature enacted the Uniform Electronic Transactions Act (the “UETA”), Civ. Code, §§ 1633.1 et seq., which provides that when a law requires a record to be in writing or requires a signature, an electronic record or signature satisfies the law. The law requires that any contract entered into between two parties may not be denied legal enforceability simply because of the use of an electronic signature. This has also be upheld in the employment law setting in some case law.

Read 1 attorney answer>

Employee Rights

Severance Agreement

Washington

Asked on Dec 4, 2024

Can a severance agreement be enforced if I feel pressured to sign it due to a short timeframe and lack of legal counsel?

I recently lost my job and was presented with a severance agreement by my employer. However, I feel pressured to sign it because the company has given me a short timeframe to review and accept the agreement, and I do not have access to legal counsel to help me understand the terms and potential implications. I am concerned that if I sign the agreement without fully understanding it, I may be waiving important rights or benefits that I am entitled to. Can a severance agreement be enforced under these circumstances?

5.0 (18)

Merry K.

Answered Dec 27, 2024

My answer depends on many factors. First, if you are an "at will" employee (no employment contract), the employer can fire you for zero reason and with zero notice, and you have no rights unless you can prove that the employer is violating state or federal law (such as firing you for illegal discriminatory reasons, for submitting a safety complaint, or something similar). If you do have an employment contract, or possibly if you are 40 or older, you have the right to be given 21 days to review a severance proposal. I suggest that you submit a proposal here on Contracts Counsel, with a short turnaround, and ask an employment attorney to review the proposal and your employment situation with you. I generally engage in this sort of review myself, but, unfortunately, am not available until the end of January. Another option is to find an attorney through this national employee's attorney organization: NELA.org In either case, prepare yourself to pay $300 - $500 for a thorough review and discussion. Good luck to you.

Read 1 attorney answer>

Employee Rights

Severance Agreement

New Hampshire

Asked on Feb 8, 2023

In florida, 70 employees at my business they lay off 10 and give severance to 8 out of the ten, myself 5 year employee and a 2 month employeee and both are sales others are operation, do have rights to get the same severance?

looking for my severance

View Moxie M.

Moxie M.

Answered Feb 17, 2023

Generally, in Florida, severance is a gift. $1 of severance is usually $1 more than an employer is obligated to provide. An offer of severance may be required if an employee has an employment agreement providing for severance or is otherwise subject to a collective bargaining agreement that provides for severance. Severance agreements that are only offered to certain employees in a discriminatory manner (such as based on age, religion, national origin, sex, etc) may be a violation of local, state and/or federal law.

Read 1 attorney answer>

Employee Rights

Severance Agreement

Texas

Asked on Jun 20, 2023

Severance agreement and reduction in force?

I recently received a severance agreement from my employer that included a reduction in force. I am unsure of the implications of this, as I am not sure if I am still entitled to benefits or other compensations associated with my former employment. I would like to better understand my rights and responsibilities under the agreement.

View Mark D.

5.0 (4)

Mark D.

Answered Aug 4, 2023

I am happy to review and discuss the severance agreement with you. On average, the cost associated with a review can be anywhere from $525+ depending on the complexity of the issue.

Read 1 attorney answer>

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How to draft a severance agreement?

Answers from 1 Lawyer

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Severance agreement and unemployment benefits?

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Can a severance agreement be enforced if I feel pressured to sign it due to a short timeframe and lack of legal counsel?

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