Glossary → Employment
Employment

Severance Agreement

Pay or benefits offered when you leave, in exchange for rights.

A severance agreement gives you money or benefits on departure in exchange for giving up rights — almost always the right to sue the employer. The payout amount, benefits continuation, references, and any non-compete are often negotiable. You frequently have time to review and, for older workers, to revoke.

In practice

Workers over 40 typically get 21 days to consider an age-claim waiver and 7 days to revoke after signing.

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