A severance agreement is a contract between an employer and employee listing rights and responsibilities in the event of job termination
A severance agreement defines benefits offered by a company upon your termination. These documents usually include clauses stating reasons for the termination and may list any agreed upon non-competition clause. Usually, this document clearly defines expectations moving forward.
However, severance agreements are frequently used to ensure that an employee does not file a wrongful termination suit, which is why it is important to have your attorney review your severance agreement before signing it. Sometimes severance agreements offer benefits. Most severance agreements: