Do You Need Help Understanding or Negotiating a Severance Agreement?

Severance agreements are written by employers to restrict the rights of employees after their employment is terminated.  In exchange for signing this agreement, an employee generally receives a monetary payment from the employer which may offer a way to moderate the financial disruption associated with losing a job.

Employees are often advised to seek the advice of legal counsel before signing these agreements.  Unfortunately, many employees refrain from doing so, resulting in an outcome that is not in their best interest.  Sometimes, companies use these agreements to protect themselves from possible litigation because of an unlawful violation of an employee’s rights.

Is the Severance Agreement in Your Best Interest?

  • Has the company discriminated against you or violated the law in another way?
  • Is the amount offered in the severance agreement adequate based on your potential legal claims?
  • Does the agreement provide protection from false job references after you leave the company?

These Agreements Generally Come With Obligations:

  • Keeping the severance agreement confidential
  • Waiving any potential legal claims against the company
  • Not disparaging the company
  • Agreeing to unreasonable non-compete terms and conditions


If you are potentially giving-up a valid legal claim against the company, it is advisable to have an attorney negotiate with the employer to secure more favorable terms including a reasonable severance payment.  Sometimes, it is difficult for employees to determine whether their rights have been violated.

If you have been given a severance agreement proposal, contact Rich Daugherty for an initial phone conference at no charge.

Rich represents clients throughout North Carolina and is available to meet with prospective clients outside of Chapel Hill when circumstances permit.  Evening appointments are also available.

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