Severance Agreement
What to review in a severance agreement before signing
A severance agreement usually asks you to release legal claims in exchange for money or extended benefits, so the trade must be worth it. Confirm the severance amount, payment timing, unused PTO handling, bonus treatment, equity vesting or exercise windows, and COBRA or healthcare subsidies. Read the release carefully: which claims you waive, whether you keep rights that cannot be waived, and if confidentiality or non-disparagement are mutual. Post-employment restrictions—non-compete, non-solicit, and cooperation clauses—can reduce the real value of the package. Also note return-of-property deadlines, reference language, rehire eligibility, and any revocation period. Employees can upload a severance agreement PDF, DOCX, or TXT to Contract Analyzer for a structured score, verdict, findings, missing clauses, and key terms. The output is informational only and not legal advice; use it to prepare questions before the signing deadline.
Red flags
Watch for these issues in a severance agreement.
- Broad release of claims with little severance relative to tenure
- New or expanded non-compete introduced only at exit
- Payment delayed for months or conditioned on unclear cooperation
- Non-disparagement that silences you but not the company
- Equity deadlines too short to exercise after termination
- Forfeiture of already-earned commissions or bonuses
- Confidentiality that blocks filing charges with government agencies
- Short signing window with pressure and no revocation period noted
Red flags are starting points, not automatic deal-breakers. Context matters: a harsh clause may be negotiable, industry-standard, or offset elsewhere in the document. Use them to prioritize what you verify next — then confirm the exact wording in your file. For a general pre-sign frame, see the contract checker checklist.
Key clauses
Clauses worth locating before you commit.
Knowing the clause names helps you search the PDF and ask sharper questions. If a listed clause is absent, that absence itself may be the finding — especially for termination, liability, payment timing, or confidentiality scope.
Contract Analyzer surfaces many of these as findings or missing-clause notes in a structured report. Learn more about the method on what contract analysis is and how the product compares to enterprise tools on contract analysis software. Credit costs are explained on pricing; deeper explainers live on the blog.
Related types
Explore similar agreements.
Employment Contract
An employment agreement that sets pay, duties, benefits, and the rules that govern the job relationship.
NDA
A nondisclosure agreement that defines what information must stay confidential and what happens if it is shared.
Consulting Agreement
A consulting contract that covers advisory scope, fees, independence, IP, and confidentiality between client and consultant.
Freelance Agreement
A contract between a client and independent contractor covering scope, pay, IP ownership, and delivery terms.
Loan Agreement
A lending contract that sets principal, interest, repayment schedule, collateral, and default consequences.
FAQ
Questions about severance agreement review
Do I have to sign a severance agreement?
Usually no. Severance is often optional consideration offered in exchange for a release. Declining may mean you keep claims but lose the package.
What makes severance “enough”?
It depends on tenure, role, leverage, and local norms. Compare weeks of pay, benefits bridge, equity treatment, and new restrictions you are accepting.
Can a severance agreement add a non-compete?
Sometimes employers try. Extra restrictions should come with extra consideration, and enforceability still depends on applicable law.
What is a revocation period?
Some separation agreements, especially those involving age-discrimination releases, give a period to revoke after signing. Confirm whether that applies to you.
Is Contract Analyzer a substitute for an employment lawyer?
No. It provides an informational structured review so you can spot issues quickly, then decide whether to negotiate or seek counsel before the deadline.
Ready to review a severance agreement?
Create an account, buy a credit pack, upload your document, and get a structured report with findings and quotes. Not legal advice.