Can you change your mind after signing a severance agreement?
Asked by: Eldridge Ferry | Last update: November 29, 2025Score: 4.3/5 (44 votes)
In general, employers give employees 21 days to consider and sign or not sign the severance agreement; however, the timeline is defined by the agreement itself and certain statutory provisions. And usually, employers must give employees who are older than 40 seven days after signing to change their minds.
Can I change my mind after signing a severance?
As a general rule, severance agreements can be rescinded by the employer up until the moment they are signed. Once signed, in general, only the employee can rescind (and that only for a limited period of time).
Can a severance agreement be withdrawn?
Can a severance agreement be withdrawn? It depends. In many states, you may withdraw your agreement to the severance package within seven days after you sign it. If you have 21 days to consider the offer, then your employer cannot withdraw it during that time.
Can an employer revoke a severance agreement after signing?
Can a company rescind a severance package after signing? It is unusual, but a company may rescind a severance package offer, especially if there is bad behavior by the employee before the agreement is signed. In many states, the agreement may be withdrawn within seven days of signing.
Is a signed severance agreement legally binding?
A severance agreement is a legally binding contract that outlines what happens when an employee leaves the company. Generally, by signing the agreement, you give up your right to pursue legal action against your employer.
Severance Agreement: Should You Sign It? | Advice from an Employment Lawyer
Can you void a severance agreement?
Fraud, misrepresentation, duress, or unconscionability are common defenses you can use if you want to void a severance agreement that you already signed.
Can I still sue after signing a severance agreement?
In California, this agreement is binding, and there's no going back once it's signed. If you waive your legal rights, you're agreeing to not take any action against the employer. This means you can't sue them, regardless of how much evidence you may have to prove that they wronged you.
Can a company take back a severance offer?
Okay, unfortunately without any type of contractual obligation a severance package is entirely voluntary on the part of the employer and they can rescind that offer at any time up until the employee accepts it.
What are the red flags in a severance agreement?
Severance agreements can provide crucial financial support for departing workers, but employers often have ulterior motives when offering them. Pressure to sign, inadequate pay or benefits, protections favoring the employer at your expense, and overly restrictive provisions are red flags in a severance agreement.
What is the downside to severance?
These include financial drawbacks such as loss of steady income and potential loss of benefits, as well as the uncertainty of future job prospects and impact on retirement savings and benefits.
Can a company cancel your severance package?
Yes, your employer can change or even cancel your severance amount if you do not have a contract detailing how your severance package is calculated. If you do not have an agreement, you employer has full discretion to determine how much to offer, to change the offer, or to simply not offer a severance package.
What is the rule of 70 for severance?
5) What is the Rule of 70 for severance? In the United States, the "Rule of 70" for severance is a simple way to determine if an employee is eligible for retirement-related. If the sum of the employee's years of service and age is 70 or more, you can combine retirement benefits as severance pay.
How enforceable are severance agreements?
While severance agreements are generally binding upon signature, their enforceability is not immune to challenge. However, employees faced with signing such agreements should approach them with awareness of their rights and seek legal counsel if they suspect terms are unfair or unlawful before signing.
Can I refuse a severance package?
What are common reasons to reject a severance offer in California? Inadequate compensation, restrictive clauses, waiver of valuable legal claims, or discriminatory terms are valid reasons to reject a severance offer.
Can I still accept severance if I take another job?
While severance payments typically won't stop after finding another job, employees must also consider the relationship between severance payments, unemployment benefits, and new employment.
What makes a severance agreement invalid?
Lack of Voluntary Consent: Under California law, a severance agreement can be considered valid and enforceable only if the parties entered into it voluntarily. If your consent was obtained through coercion, duress, or fraud, the agreement will be deemed invalid.
Should you accept a severance package?
Consequently, you must thoroughly review the terms of any severance agreement and weigh the pros and cons of signing. For this reason, it's a good idea to talk to experienced employment lawyers before agreeing to the terms of any proposal for severance compensation or taking any severance payment.
What is prohibited in severance?
Separation agreements cannot include language barring you from pursuing legal action for past or potential injuries, including any bodily harm resulting from accidents, occupational hazards, or unsafe working conditions.
What is fair severance package?
The severance pay offered is typically one to two weeks for every year worked, but it can be more. If the job loss will create an economic hardship, discuss this with your former employer. The general practice is to try to get four weeks of severance pay for each year worked.
Can I sue my employer if I signed a severance agreement?
For example, in California, you can relinquish your right to file a class action lawsuit against your employer in a severance agreement. However, your right to sue your former employer as a part of a class action under the Private Attorney General Act (PAGA) survives this waiver.
Can I still sue if I signed a release?
If an employee was terminated for reasons that violate California public policy—such as whistleblowing, reporting illegal activity, or refusing to engage in unlawful conduct—a wrongful termination claim may still be valid, regardless of the release agreement.
How to revoke a severance agreement?
What If You Already Signed A Severance Agreement? If you are over the age of 40 and 7 days have not passed since you signed it, you can revoke it by giving notice to your employer in writing.
Can you change your mind after signing severance agreement?
Another critical aspect of severance agreements in California is the revocation period. For employees aged 40 and above, federal law mandates a 7-day revocation period after signing the contract. This means you have a week to change your mind after signing, providing additional protection.
Can severance agreements be overturned?
Even if they sign the agreement within the 45-day period, they are entitled to an additional 7 days to revoke the agreement.
Can you fight a severance package?
Yes. While there isn't a requirement for employers to offer severance pay under the Fair Labor Standards Act (FLSA), you can still try to negotiate. When offered a severance package, you're not required to sign the agreement immediately.