Scrutr AI — Severance

Severance agreement review. Every clause. 60 seconds.

Upload your severance or separation agreement. Scrutr's AI flags unfair release scope, non-disparagement traps, equity forfeiture, and short consideration windows — with redlines and a counter-offer email. Free for your first review.

Review my severance agreement → See a sample review

A severance agreement is presented as a final document — sign it as written or walk away. It rarely is. Companies build in flexibility on every clause that matters: severance amount, equity acceleration, release scope, non-disparagement reciprocity, and post-employment restrictions. Scrutr reads the agreement, identifies what's standard and what's not, and gives you the redlines and the counter-offer email that turn a take-it-or-leave-it document into a negotiation.

What Scrutr looks for in a severance agreement

Scrutr's severance review checks the six clauses that decide whether the agreement is fair: severance amount and payment structure (lump sum vs salary continuation), release scope (does it release ADEA / FLSA / state law claims), non-disparagement reciprocity (mutual or one-way), equity treatment (acceleration, exercise window, forfeiture), post-employment restrictions (non-compete, non-solicit, garden leave), and reference language. Each is scored against market benchmarks for the role, tenure, and circumstances.

The release scope clause — read this one twice

The release is the heart of the agreement. The company is paying for finality. But the standard form often releases more than the company actually needs: every employer at the company, every officer, every subsidiary, every claim under every law, including claims you don't even know about yet. Scrutr flags: ADEA-specific language (required for employees 40+, with a 21- or 45-day consideration window and 7-day revocation), claims explicitly preserved (workers' comp, vested benefits, indemnification), and any unusual scope expansion.

Non-disparagement — make it mutual or carve out exceptions

Most severance agreements include a one-way non-disparagement: you can't speak negatively about the company, but the company can say whatever it wants about you. This is negotiable. Scrutr flags one-way clauses and suggests two standard fixes: make the obligation mutual (binding on the company's officers and HR), or carve out specific exceptions (truthful statements in legal proceedings, statements to regulators, statements to spouse / counsel / accountant). The 'mutual or carve-out' ask is rarely refused.

Equity: acceleration, exercise window, and forfeiture

Most stock plans default to: unvested equity is forfeited on separation, vested options have 90 days to exercise. Both are negotiable in a severance context. Scrutr flags the default, identifies the size of the equity at stake, and suggests the standard asks: partial acceleration on unvested shares (especially in a layoff), extended exercise window (12 months is increasingly common), and tax-friendly structuring of any cash-out.

How Scrutr's severance review differs from an employment lawyer's review

An employment lawyer reviewing a severance agreement typically charges $750–$2,500 and takes 3–7 days. The output is a memo of asks. Scrutr produces the same risk analysis and the counter-offer email in 60 seconds, free for your first review. For very large severance packages or complex situations (alleged discrimination, whistleblower claims, executive packages with golden parachute terms), an employment lawyer is still appropriate. For the standard severance most employees see, Scrutr is what gets the negotiation started in time.

Common questions

Is severance negotiable?

Almost always yes — even when presented as final. The most commonly successful asks: more severance weeks (especially for tenured employees), equity acceleration, extended health insurance (COBRA reimbursement), extended exercise window for vested options, mutual non-disparagement, and tightened non-compete scope. Scrutr generates the counter-offer email automatically.

How long do I have to sign a severance agreement?

If you're 40 or older, federal law (ADEA / OWBPA) requires a minimum 21-day consideration window for individual separations and 45 days for group layoffs, plus a 7-day revocation period after signing. Under 40, there's no statutory minimum, but most employers offer 7–21 days. Scrutr flags consideration windows below market and lets you know if the agreement is ADEA-compliant.

Should I sign a non-compete in my severance?

If the original employment contract already had one, the severance is the moment to negotiate it down — scope, geography, duration. If there was no non-compete before, asking you to sign one now in exchange for severance is unusual and worth pushing back on. Scrutr flags new restrictions and suggests the standard market reductions.

Can I keep my equity after separation?

Depends on the plan, the cause of separation, and what you negotiate. Default rules: unvested equity is forfeited, vested options have 90 days to exercise. Both are negotiable, especially in a layoff (involuntary separation). Scrutr identifies what's at stake and suggests the right ask.

What if I think I was discriminated against?

Don't sign the severance until you've spoken with an employment lawyer. Scrutr's review will flag the release scope and any specific claims being released (e.g. ADEA, Title VII), but the decision about whether to release a potential claim is one to discuss with counsel. Scrutr's analysis can help frame that conversation.

Related guides

Offer letter review Offer letter red flags Can I negotiate my offer letter? Is my non-compete enforceable? AI contract review Contract red flags guide Negotiate contract email Scrutr vs hiring a lawyer

Read before you sign that severance.

Upload your severance agreement. Get a full analysis in under 60 seconds — free to try.

Review my severance — it's free →