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my name is Pete Reinhardt and Im going to share with you several things to consider before signing a severance agreement it is common for an employer who is discharging an employee to offer a severance payment this is particularly true when the discharge does not involve misconduct by the employee an employer is not required by law to offer any severance payment nor is the employer required to offer any specific amount of severance prior to making a severance payment an employer will almost always require an employee to sign a written agreement severance agreements may have different titles such as a resignation and release agreement separation and release agreement or retirement and release agreement regardless of what it is called the agreement will create important legal rights and remedies for both parties while the severance payment will assist the departing employee with some of his or her financial needs on a short-term basis the severance agreement also serves a very useful pu