Read the severance as a package of exchanged promises, not only a payment amount.

Create a term sheet with the gross payment, payment date and method, payroll or nonwage characterization, benefits, accrued compensation, expense reimbursement, equity, bonus, commission, reference, unemployment language, property return, and any continuing services. Separate amounts already owed from new consideration offered for the release. Do not assume the agreement's tax label controls tax treatment.

On the worker's side, list every release, waiver, covenant not to sue, confidentiality duty, non-disparagement term, cooperation obligation, return or deletion promise, restrictive covenant, intellectual-property statement, no-rehire clause, resignation representation, and remedy for breach. Identify which promises are mutual and which bind only the worker.

Record deadlines and conditions exactly as written: delivery, signature, company execution, payment trigger, revocation, return of property, transition tasks, and benefit elections. Preserve the original offer and every revision. An employer's requested response date is not necessarily the same as a statutory consideration or revocation rule, and this guide does not calculate either.

Read the defined terms. ‘Company’ or ‘released parties’ may include parents, affiliates, benefit plans, officers, employees, insurers, customers, or unknown entities. Determine whether the release covers claims through signing, through separation, or another date. Whether it includes contract, wage, discrimination, retaliation, leave, benefit, tort, workers' compensation, or statutory matters; and which claims cannot lawfully be waived.

Distinguish a release from a covenant not to sue, promise not to assist, cooperation clause, and fee-shifting term. Government-enforcement rights and the ability to communicate with an agency can raise separate issues from the ability to recover personally. Do not summarize the document as ‘I can never file anything’ or ‘the release is unenforceable’ without clause-by-clause and law-specific review.

Check representations about existing claims, injuries, pay, leave, workplace reports, confidential information, property, investigations, and prior filings. A false representation can create a new dispute. If a workers' compensation, benefit, bankruptcy, lien, government, union, or agency matter exists, identify it before signing and determine whether consent, approval, carveout, or separate advice is needed.

The Equal Employment Opportunity Commission's severance guidance explains that a waiver of federal age-discrimination claims must be knowing and voluntary and satisfy statutory requirements. Review the writing, clarity, specific reference to Age Discrimination in Employment Act rights, future-claim exclusion, additional consideration, written advice to consult counsel, consideration time, and revocation language under current law.

A group termination program can require different time and disclosure analysis than an individual exit. Identify the decisional unit, eligibility factors, time limits, job titles and ages listed, and who was selected or not selected. Do not assume a list is complete or that a defect invalidates every agreement term. The effect belongs to current authority and the actual program.

Age-waiver rules do not answer whether other releases, payment obligations, confidentiality terms, or state-law claims are valid. Preserve when the agreement was delivered, all attachments, revisions, and pressure applied. A revision may affect the analysis, but this guide does not assign a new period or tell a visitor whether an attempted revocation was effective.

Mark every exception for truthful testimony, legal process, government agencies, tax advisers, spouse or family, unemployment, benefits, and enforcement of the agreement. Determine whether the worker must notify the company before responding to process and whether that is lawful or practical. A confidentiality clause about payment terms is different from a clause restricting discussion of working conditions or legal rights.

The National Labor Relations Board has addressed severance language that may interfere with covered employees' rights under the National Labor Relations Act, including broad confidentiality and non-disparagement provisions. Coverage, supervisor status, clause text, context, and current Board law require review. The cited General Counsel memo is guidance, not a Board holding. Do not assume every worker or agreement is covered or every restriction is void.

Property and deletion clauses need an inventory. List devices, keys, records, accounts, backups, personal files, company files, confidential data, and evidence potentially relevant to a dispute. Do not delete or certify deletion while a preservation question remains unresolved. Do not retain restricted material merely because a claim is possible. Counsel should reconcile return, deletion, preservation, privilege, and lawful-access duties before certification.

Identify withholding, payroll treatment, tax reporting, installment risk, offsets, conditions, recoupment, liquidated damages, fee shifting, and the company's remedy for alleged breach. Tax advice belongs to a qualified adviser. The agreement should not be described as guaranteeing a particular after-tax amount or benefit outcome.

Review health coverage end dates, continuation rights, employer contributions, retirement and equity vesting, exercise windows, life or disability coverage, paid time, bonuses, commissions, deferred compensation, and references to plan documents. The agreement may not control every plan. Obtain the governing plan or administrator information and keep benefit claims separate from the release analysis.

Consider unemployment statements, separation reason, personnel record, reference protocol, rehire eligibility, and transition services. A promise of a neutral reference should identify speaker, content, channel, and remedy. Do not state that filing for unemployment has no effect on other rights. Submissions and findings can become part of the factual record depending on the matter.

Prepare three lists: must-fix terms that create unacceptable legal or operational risk, value terms worth requesting, and language that is acceptable if clarified. Tie every request to a concrete reason. Examples include narrowing released parties, preserving agency and testimony rights, clarifying taxes and payment, protecting earned compensation, making non-disparagement mutual, limiting cooperation, defining a reference, or resolving property and preservation conflicts.

Assess the alternative if no agreement is reached. That may include no severance, an existing claim, continued obligations, benefit decisions, unemployment, litigation risk, or a need for immediate income. Do not compare the offer to an online ‘standard weeks per year’ formula as if it controlled. Industry practice, tenure, contract terms, decision risk, claims, and employer objectives are evidence, not guarantees.

Before signing, confirm the final document, attachments, parties, dates, payment mechanics, initials, signature authority, and delivery receipt. After signing, preserve the executed copy and any revocation communication. Do not mark the deal complete until required execution and payment states are verified separately.