Were you handed papers after being fired or laid off and told to sign for pay? A severance agreement is a contract between an employer and an employee that sets the terms of separation from the job. It often offers money, continued benefits, or other support in exchange for promises by the worker, such as keeping information confidential, not suing, not speaking negatively about the company, or giving up certain legal claims. Severance pay is usually not required unless a contract, policy, union agreement, or law says otherwise.

What matters most is the fine print. Many severance agreements include a release of claims, which can block later cases involving discrimination, retaliation, unpaid wages, harassment, or wrongful termination. If the worker is age 40 or older, any waiver of federal age-discrimination claims must follow the federal Older Workers Benefit Protection Act, including review and revocation rules.

For someone dealing with a workplace injury or a job loss after reporting unsafe conditions, signing too fast can cost real rights. A severance agreement may affect a claim under workers' compensation, a complaint with the EEOC, or a case under the South Carolina Human Affairs Law. South Carolina does not require severance by general statute, so the employer's offer is often negotiable. If the agreement is only in English and the worker does not fully understand it, that is a serious reason to slow down and get advice before signing.