A severance agreement may seem like an easy way to end an employment relationship, but be careful! It often comes with significant downsides. Disadvantages of a Severance Agreement: No protection against dismissal: Employees lose their rights under labor protection laws. Unemployment benefit suspension: The employment agency may impose a suspension of up to 12 weeks. No entitlement to severance pay: Severance compensation is only granted if explicitly agreed. Pressure to sign quickly: Employers may push for an immediate signature. Unfavorable contract terms: Waivers of salary claims or non-compete clauses may be included. Tip: Always have the contract reviewed by an employment law attorney before signing!