What is What Is a Severance Agreement?
A severance agreement is a contract offering departing employees pay and benefits in exchange for signing a release of legal claims. Employees over 40 must get 21 days to review under the OWBPA.
Practical Example
When a U.S. consumer researches severance agreement, understanding the mechanics up front helps them compare providers, avoid hidden fees and choose the option that best fits their budget and long-term goals.
Why It Matters
Getting severance agreement right can save households hundreds to thousands of dollars each year and prevents disputes that end up in state regulator complaints or court.
Frequently Asked Questions
Because it affects the price you pay, the protections you keep and the options you have — details that shift with each new regulatory cycle.