Severance Package Review in Birmingham, MI: 7 Terms to Check Before You Sign

Getting a severance package is one of those moments where everything slows down for a second. Maybe you expected it, maybe it came out of nowhere—but either way, you’re sitting there with a document in front of you, and there’s a lot riding on what you do next.

I’ve had plenty of people come in with that same document, usually saying something like, “It looks fine… I think.” And that’s the problem. These agreements are written in a way that makes them look straightforward, but they’re doing a lot more than most people realize.

Because once you sign it, you’re not just accepting a check. You’re making a legal decision. In most cases, you’re giving up your right to bring claims against your employer. You don’t get to revisit that later if something doesn’t sit right.

That’s why this is one of those situations where slowing down matters. You don’t need to panic—but you do need to understand what you’re looking at before you put your name on it.

#1: The Release of Claims

What You’re Giving Up

This is the most important part of the entire agreement.

The “release of claims” section is where you agree not to bring legal action against your employer for anything related to your employment.

That can include:

• Discrimination claims
• Retaliation claims
• Wage and hour disputes
• Wrongful termination

How Broad the Language Can Be

Not all releases are created equal. Some are narrow and specific. Others are extremely broad.

Watch for language that:

• Covers “any and all claims”
• Includes claims you don’t even know about yet
• Extends beyond your employment period

The broader the language, the more you’re giving up—and the more carefully you need to evaluate whether it’s worth it.

When This Term Becomes a Problem

The release itself isn’t unusual. Almost every severance agreement includes one. The issue is whether it’s reasonable under the circumstances.

Ask yourself:

• Does the compensation reflect what I’m giving up?
• Are there potential claims I haven’t explored yet?
• Do I fully understand the scope of this release?

This is often the point where having someone walk through the agreement with you can make a real difference—because once it’s signed, the decision is final.

#2: Severance Pay and Benefits

How Much Are You Actually Getting?

This is usually the first thing people look at—and it should be. But you want to go a step further than just the headline number.

Take a closer look at:

• The total amount being offered
• Whether it’s a lump sum or paid over time
• Any conditions tied to receiving payment

Benefits Beyond Salary

Severance isn’t always just about a paycheck. There can be additional pieces that carry real value—if they’re included.

You might see:

• Employer contributions toward COBRA health coverage
• Payment of bonuses or commissions
• Outplacement services or career support

These extras can make a meaningful difference, especially if you’re transitioning between jobs.

Is It Negotiable?

A lot of people assume the number is set in stone. It’s not.

In many cases, there’s room to negotiate—especially if:

• You’ve been with the company for a long time
• You held a higher-level or specialized role
• There’s potential legal exposure for the employer

#3: Non-Compete and Non-Solicitation Clauses

Restrictions on Future Employment

This is where things can start affecting your next move.

Some severance agreements include restrictions that limit:

• Where you can work
• Who you can work for
• Whether you can start a competing business

Non-Solicitation Provisions

Even if there’s no full non-compete, there’s often a non-solicitation clause.

This can prevent you from:

• Reaching out to former clients
• Doing business with company contacts
• Recruiting or hiring former coworkers

Why These Clauses Matter More Than You Think

These restrictions can directly affect your ability to earn a living.

You want to look closely at:

• Duration – How long does it last?
• Geographic scope – How wide is the restriction?
• Reasonableness – Does it make sense given your role?

If it limits your ability to move forward, it’s worth addressing before you sign.

#4: Confidentiality Provisions

What You Can and Can’t Say

Confidentiality clauses are standard, but they can vary quite a bit in scope.

They often cover:

• The terms of the agreement
• The circumstances of your departure
• Company information

Practical Implications

This isn’t just legal language—it affects real conversations.

You may need to think about:

• What you can say to future employers
• How you explain your departure
• What you can share with coworkers or others

Red Flags to Watch For

This is where you want to slow down and read carefully.

Watch for:

• Language that’s too broad or vague
• Terms that could conflict with your right to report legal violations
• Requirements that are difficult to realistically follow

A confidentiality clause should protect legitimate business interests—not create unnecessary risk for you moving forward.

#5: Non-Disparagement Clauses

Mutual vs. One-Sided Agreements

This is one of those terms that people skim past—and it can come back to bite them later.

A non-disparagement clause typically says you won’t make negative statements about the company. But the key question is whether it goes both ways.

Look for:

• Mutual clauses – Both you and the employer agree not to disparage each other
• One-sided clauses – Only you are restricted

If it’s one-sided, that’s something worth pushing back on. There’s no reason the restriction shouldn’t apply both ways.

How Broad Is “Disparagement”?

The language here can be surprisingly vague.

Ask yourself:

• Does this include opinions, or just false statements?
• Does it apply to social media?
• Is there a time limit, or is it indefinite?

Some clauses are narrowly tailored. Others are written so broadly that almost anything you say could be considered a violation.

Real-World Impact

This isn’t just about avoiding public statements.

You could run into issues if:

• A future employer asks about your experience
• You respond honestly to a reference check
• You make a casual comment that’s interpreted the wrong way

#6: Deadlines and Revocation Periods

How Long Do You Have to Decide?

Severance agreements often come with a clock attached.

Depending on the situation—especially if age-related claims are involved—you may be entitled to:

• A review period (often 21 days)
• A revocation period (typically 7 days after signing)

Even when those legal requirements don’t apply, employers will usually set a deadline.

Why Timing Matters

This is where a lot of people feel pressure—and that pressure can lead to mistakes.

Rushing to sign can mean:

• Missing key terms
• Overlooking negotiation opportunities
• Agreeing to something you don’t fully understand

Using the Time Strategically

That window you’re given isn’t just a formality—it’s an opportunity.

Use it to:

• Read the agreement carefully
• Ask questions
• Explore whether better terms are possible

#7: References and Future Employment Terms

What Will Your Employer Say About You?

This is one of the most overlooked parts of a severance agreement—but it can matter just as much as the money.

Some agreements address:

• Whether the employer will provide a reference
• What information they’re allowed to share

Neutral vs. Positive References

A lot of employers default to a “neutral reference,” which typically includes:

• Dates of employment
• Job title

That’s it.

In some cases, you can negotiate for more:

• A written reference letter
• Agreed-upon language for future inquiries
• A designated contact person

Why This Matters Long-Term

You’re not just closing one chapter—you’re starting another.

What your former employer says (or doesn’t say) can affect:

• Your ability to land your next job
• How your departure is perceived
• Your overall professional reputation

It’s easy to overlook this section when you’re focused on the financial terms—but long-term, it can be just as important.

Slow Down Before You Sign

Most severance agreements aren’t outrageous. But they’re not written for your benefit either. They’re designed to protect the company, limit exposure, and close the door on future issues. That’s just the reality of it.

The key is knowing what you’re agreeing to before you agree to it. Not just the number at the top, but everything underneath it. Because sometimes the most important terms are the ones that don’t jump out at you right away.

Have Batey Law Review Your Severance Agreement

If you’ve been handed a severance package and you’re trying to decide what to do next, don’t rush it. This is one of those decisions that’s worth getting right the first time.

At Batey Law Firm, PLLC, severance agreement review is a regular part of what we do. We look at the entire agreement—what you’re being offered, what you’re giving up, and whether there’s room to improve the terms before you sign.

Contact Information:

Batey Law Firm, PLLC
30200 Telegraph Rd., Suite 400
Bingham Farms, MI 48025

📞 Phone: (248) 540-6800
🌐 Website: www.bateylaw.com
📧 Email: sbatey@bateylaw.com