Do you have to sign termination papers?

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(MoneyWatch) Dear Evil HR Lady,
I am being terminated from my job this week and my boss would like me to sign papers. I don't want to sign anything.

Do I have to sign them?

Well, it's true that the only thing they can really do to you for not signing is fire you, which they are already doing. That said, what does signing the papers mean?

There are generally three types of papers involved in a termination. The first is simply a statement that you are being terminated and it may or may not say what the reason for that termination is. The signature asked for is an acknowledgement that you have received the information. It is not (generally) an acknowledgment that you agree with their assessment of the reason for termination.

There is absolutely no reason not to sign this type of paper. It merely says, "Yes, I received and read these papers." Not signing them won't change anything about your termination. (It's not like they'll say, "Oh dear, John won't sign these papers, I guess he'll have to keep working!") If you don't sign, it's most likely that your manager and another witness will write "John Doe received papers on 4/22/2012 and refused to sign." If your termination is because of a layoff of some sort and they would have considered you for rehire, then you've just had your status changed to "Ineligible for re-hire."

If it is something that says you agree with their assessment and you don't, you don't have to sign. (For instance, "I acknowledge that I came in late 7 times in the past 30 days and therefore I am being terminated.") If they pressure you, you can sign it with a note that says, "Signing as to receipt only."

The second type generally details what your obligations are. This can be something like a relocation agreement or tuition reimbursement. Again, your signature is just acknowledging that you are aware of these obligations. Not signing doesn't make them go away.

The third type of termination papers are a bit more serious. These are generally legal agreements that involve you promising to do X and the company promising to do Y. They can be asking you to agree not to sue (generally such a document is known as a "General Release"), not to compete for a certain time period, or to not recruit your former coworkers. In exchange the company offers you severance, waves repayment for education or relocation, or allows your 401(k) to be fully vested even if you haven't worked the requisite number of years.

This type of document is extremely important and you should run it by a lawyer before you sign (or don't sign), unless you feel confident that you understand it. No matter what the person who hands the document tells you, what is written prevails. So if there is a non-compete clause in the document, but the HR person says, "Oh don't worry, we never enforce that," they can enforce it if they want to.

In this case you have to evaluate if you want what the company is offering more than what they want you to give up. If it's a layoff and you feel like you weren't chosen for any illegal reason (such as race, gender, pregnancy status, etc), then signing a release saying, "I won't sue you!" is no big deal. Even if you think you were terminated for an illegal reason, if the severance they are offering is more than a token amount, it's probably more than you'll see in a lawsuit and you should consider signing.

No matter what, make sure you keep a copy of any document you sign.

Generally refusing to sign documents because you're angry just burns a bridge. How you handle yourself in a termination can have a huge impact on what your manager says when someone calls him for a reference. And destroying any goodwill that you have isn't worth your temporary temper tantrum.

Have a workplace dilemma? Send your questions to [e-mail].

[PsychPa77]

I was fired verbally with no paperwork to review or offered to sign. I was also a contract employee good until 06/30/13. I am pretty sure I am right this is either illegal, questionable, and can lead to wrongful termination lawsuit. Also, the verbal reason was because I went over on my cellphone and WiFI usage which I payed for....please give me feedback

[dzimmer821]

What can you do if they give you a termination date 4 months in the future with promises of a retention bonus if i stay until then and 100% vacation payout but refuse to put anything in writing.

[stephenbooth_uk]

My advice, based on hard experience (fortunately other people's), is never sign anything on the day. Nothing. Not even if you're told it's just to say you've received something. Not even if they are offering you money to do so. Not even a leaving card for someone else who is leaving at the same time.

The correct response to being asked to sign something, anything (ANY THING), is to say in a pleasent tone with a smile on your face "I'd like to take some time to review this and make sure I know what I'm signing, maybe run it past my lawyer. I'll get back to you by [day about a week hence] if I have any questions. OK? I'm sure you would agree it's not sensible to sign something without reading it. Who should I email with any questions? "

Take it away, read it, email in some questions before the date, get your lawyer, and if you're in a union their lawyer, to review everything. Don't keep them waiting just because you can but make sure that you're completely happy with what you're signing and can give a reason for what you're not signing. Bear in mind that non-competes are usually unenforceable if challenged, but you have to challenge them.

Be polite. Be clear. Smile. But don't sign anything you and your lawyer are not 100% happy about you signing.

[vanhoosear]

A very common document or clause you'll also see is a nondisparagement agreement: i.e., I promise I won't say anything bad about the company that laid me off ever in the future.

Many companies will make you sign something similar as part of your employment papers, or in the process of your employment. Read it all very carefully!

[karenyoung521]

You left out the most important fact about these termination papers. If you are not happy with the package being offered - or even if you are - YOU CAN ASK FOR MORE. And the time to do it is when the package is offered. You'll never have more leverage than at that moment. Believe me: The company has plenty of money, and other people are getting better packages than you. (Ever heard of a golden parachute?) If you have a particular need for more cash or a longer period of health insurance, ask. If you can stay calm and dispassionate, it helps a lot. You can say you will delay signing until you have an answer. What have you got to lose? Nothing. They just want to move on and they have money to make that easier for everyone.

[ice444]

In my experience signing this, getting a payout and moving on is the best move (most of the time!)

Even if they are harassing/bullying you (it has happened to me before!) it's easier to sign and move on with your life. (especially if their offering a large severance package - which in my instance was 6 months pay!)

Comiserations, but as they say, things happen for a reason.

[Flygt100]

Wow Suzanne you must be one in a million. "We put a stop to the termination" if you thought something was hinky??? In my and many others experience, HR does not put a stop to anything, but merely does what corporate tells them to. Maybe that is an idea for an article. How to know when you have an HR department! lol

[WUFFDC]

I agree. HR exists mainly to keep a company/org from being sued. In 'right to work states' "hinky" stuff is rampant...and the revolving door with many orgs is no coincidence. HR simply does the dirty deed at the bidding of exec's and are not or cannot be concerend with holistic health of organization and staff. I was told what a great job I had done, told I was no longer a fit in 'new direction' (which wasnt) and that I had to resign (and sign the paper on the spot)or forgo even two week severance. The org has a fine history of doing this and of course has many business problems and is shaky.

[stephenbooth_uk]

Yep, one in a million, or possibly billion. My experience is that HR exists to make the decisions that managers have already made appear legal or get those impacted by them not to sue. I've also met a lot of HR advisors and business partners who will deny vehemently that's what they do.

[Lerianis4]

Actually, the advice I got from a lawyer who specializes in these things is to NEVER sign that third category, because 99.9% of the time when they want you to sign one of those there is something hinky going on at the company in question.

Always investigate and challenge when they pull that third category of release out.

[SuzanneLucas]

I've presented these types of releases to literally thousands of employees. There was never anything "hinky" going on. It was simply a standard general release in exchange for severance. If we (HR and Legal) felt that there was something "hinky" going on with a particular termination, we put a stop to the termination.