At the end of the employment relationship, the employer may try to get an employee to sign a separation agreement. This agreement serves as an exemption from rights against the employer — essentially a promise by the worker not to bring an action against his former employer. In return, the employer may offer the employee a financial incentive, often in the form of severance pay, so that he signs the agreement. The severance and separation indemnity agreement is often a standard procedure for the company. However, it could also be a sensitive issue in which the company fears being sued. If the worker has a basis for taking legal action, the employer may be more willing to negotiate the terms of the agreement. Employees who lose their jobs can use it as leverage to negotiate a more generous severance package. Some elements common to a set of severance pay are as follows: The employer may also refuse to pay the full amount of severance pay. . .

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