pitfalls of severance packages


Severance packages can offer financial relief during transitional periods in your career, but it's essential to be aware of potential pitfalls that may accompany these agreements. Understanding the terms and implications of your severance package is crucial to safeguard your future and protect your rights. This subpage provides insights into the common challenges that can arise when dealing with severance packages, helping you make informed decisions during these critical moments.

Common Pitfalls to Be Aware Of:

Non-Compete Clauses: Some severance agreements include non-compete clauses that restrict your ability to work in your industry or region after leaving your former employer. Understanding the scope and duration of these clauses is vital to ensure you have future career opportunities.

Non-Disparagement Agreements: Non-disparagement clauses may limit your freedom to discuss your former employer, its practices, or your separation from the company. Careful consideration of these clauses is necessary to maintain your ability to share your experiences and protect your reputation.

Waivers of Legal Claims: Some severance packages require you to waive your right to pursue legal claims against your former employer. Assessing the implications of such waivers is essential to preserving your ability to seek legal recourse if necessary.

The Importance of Legal Counsel:

Navigating the complexities of severance packages can be challenging, and the potential consequences of overlooking critical details can be significant. Seeking legal counsel is a prudent step to ensure that your rights and interests are protected throughout the negotiation and review process.

Our Expertise:

At Vargas Guerra, LLP, our experienced employment law attorneys specialize in assisting individuals facing employment-related decisions, including severance agreements. We can provide the guidance and expertise needed to review, negotiate, and, if necessary, challenge the terms of your severance package to secure the best possible outcome for your future.


While severance packages can offer financial support during times of change, it's essential to approach them with a critical eye. Understanding potential pitfalls and seeking legal guidance can help you navigate these agreements successfully. Contact us today for a consultation to ensure that your rights and interests are protected throughout the severance process.