A US severance agreement needs a clear payment structure, an appropriate release and a valid signing process. Broader language is not automatically better. A foreign employer also needs to coordinate language versions, headquarters approval and local implementation. This checklist is for review preparation, not a ready-to-sign agreement.
Separate payment categories before negotiating the release
Create a schedule identifying each payment, its calculation, basis, payer, due date and any proposed condition. Do not combine wages, expenses, commissions, benefits and additional severance into one unexplained figure. Determine existing entitlements from the facts, contracts and applicable law.
The EEOC severance guidance explains that consideration for a discrimination waiver must exceed existing entitlements, that EEOC participation cannot be barred, and that ADEA waivers have special requirements. There is no single signing timetable suitable for every US separation.
Review four connected parts
| Part | Questions for the review |
|---|---|
| Payments and benefits | What is already owed, what is additional and who pays? |
| Claims and retained rights | Which existing claims are addressed and what cannot be restricted? |
| Signing process | Which review, revocation or disclosure requirements apply, and is the text understood? |
| Implementation | When does the agreement become effective, and how are payroll, benefits and property return coordinated? |
Give HR and legal reviewers the same version. Changes to the amount, timetable or affected group can require a fresh check. Keep a revision log so an old approved draft is not confused with the document actually sent to the employee.
Make bilingual documents usable
Compare amounts, dates, parties, scope and effectiveness conditions clause by clause. A prevailing-language clause should not become an excuse to leave material inconsistencies unresolved. Provide a practical opportunity to understand the document and retain the version delivered.
A Chinese internal summary can explain commercial arrangements to headquarters. It should remain consistent with the signing text. The person approving payment needs to understand which obligations arise independently and which depend on the agreement.
A hypothetical payment problem
A business plans one combined payment for final wages and additional severance, released only after signature. The review should separate the categories and establish each payment's basis and timing before designing the additional-payment process. Administrative convenience at headquarters does not answer the local-law question. This is an illustrative situation, not a client matter.
Frequently asked questions
Does a signature eliminate every dispute?
No. Assess the terms, signing circumstances and applicable requirements. A signed document can still leave legal or implementation issues unresolved.
Can we require an immediate signature?
Do not set a universal deadline around headquarters urgency. Ask local counsel which procedures apply to the individual, claim type and separation arrangement.
What information should accompany the draft?
Provide the location, relevant age information, individual or group context, claims being addressed, payment breakdown and existing agreements. Request both document review and an implementation checklist so later payroll or HR steps do not undermine the reviewed arrangement.
Contact Jinyuan Law Firm with the relevant locations, arrangement and issue
