There is no right answer for everyone. Here are important things to consider before making this decision.
1. Take your time. You need to understand the agreement. If you don’t, and you want an employment lawyer to help you, don’t wait until a few days before the deadline to sign to call a lawyer.
In most cases there is no need to rush: Depending on your age. the state you are working in and the amount of people laid off, you may be entitled to between 21 and 90 days’ notice before being let go or your own employment agreement may include notice requirements or other terms the employer must meet before letting you go and giving you such an agreement.
2. Understand why companies give these agreements.
Most of the time companies are not doing this to be generous.
They offer severance because they want employees to give up their right to sue them and sometimes because they also want to stop employees from competing with them or soliciting their customers.
Don't assume these restrictions are not enforceable. If these types of restrictions are in your separation agreement you need to be asking yourself is the compensation and other benefits being offered worth it and can I work again given these restrictions?
If you live in NJ and were part of a group layoff of 50 or more employees in the state, by law, the company has to give you 1 week of severance for every year you have worked there without you signing anything. If they want to get a release of claims from your or a noncompete they have to give you more severance that what is required.
3. Second realize that you or a lawyer may be able to negotiate better terms. Some things you may be able to get just by asking for it such as a reference letter, keeping your laptop, or a few more weeks of severance. If you have been subjected to unlawful conduct or are not confident enough to negotiate for yourself or have a complex situation, an employment lawyer may be able to get you a better overall package and narrow any restrictions in the agreement.
4. In addition to understanding what is in the agreement keep an eye out for what is missing:
if you are owed vacation days or a bonus or incentive is that stated in the agreement?
If you have certain stock rights, are they being honored?
Does the agreement explain when your health insurance will end and whether the company will give you a discounted rate to stay on their plan through your severance period?
If you are 40 years old or over and are part of a group layoff were you given a list of positions and the ages of those let go and kept? Don’t ignore this document, it may help you assess if you have a claim for age discrimination.
The bottom line: There is plenty to consider before you make this decision. Take your time.
