When you are offered a severance agreement, the most important thing to do is pause. Do not sign it immediately. Take the document home, review the restrictive covenants, benchmark the financial offer, and decide if you want to negotiate before signing away your rights.
According to our database, employees who take at least 3 days to review their agreement before signing are 22% more likely to successfully negotiate better financial terms or extended benefits.
Should I Sign Immediately?
No. Never sign a settlement agreement or severance package in the room where you are terminated. HR knows you need time, and in many jurisdictions (like the US for workers over 40 under OWBPA, or in the UK for Settlement Agreements), the law actually requires they give you a review period.
How Long Do I Have?
The review period varies by region and age:
- US (Over 40): OWBPA guarantees 21 days to review and 7 days to revoke.
- US (Under 40): Typically 5-14 days dictated by company policy.
- UK Settlement Agreements: Usually requires a minimum of 10-14 days to seek independent legal advice.
| Age/Region | Statutory Minimum Review Period | Can I Ask for More? |
|---|---|---|
| US (Over 40) | 21 Days | Yes, but rarely needed |
| US (Under 40) | None (Policy driven) | Yes |
| UK/AU | Policy driven (typically 10-14 days) | Yes |
What to Review?
Do not just look at the cash amount. You must review the entire contract for restrictive covenants.
- Are they forcing you to agree to a new non-compete?
- Is the non-disparagement clause mutual?
- Are they paying out your unused vacation time? For a deeper dive into dangerous clauses, read: 7 Red Flags to Watch For in a Severance Agreement.
When to Get Advice?
If you feel your redundancy is discriminatory, retaliatory, or a breach of contract, seek legal counsel immediately. In the UK, it is legally required that an independent solicitor signs off on a Settlement Agreement for it to be binding (and your employer usually pays for this).
Before you speak to a lawyer, use our Audit My Offer tool to get a baseline understanding of whether your financial offer is fair.
For more information on the whole process, see Severance & Redundancy Pay: The Complete Guide.