What does &quot;sign it voluntarily as my own free act&quot; mean?
<p>At the very end of a company's severance agreement (for laid-off employees), just before the signature box, the agreement reads (emphasis mine):</p>
<blockquote>
<p>I HAVE CAREFULLY READ THE FOREGOING RELEASE, FULLY UNDERSTAND ITS
MEANING AND CONSEQUENCES, AND <strong>SIGN IT VOLUNTARILY AS MY OWN FREE
ACT</strong>.</p>
</blockquote>
<p>Given that an employee isn't voluntarily laid off (i.e. being faced with this agreement in the first place isn't a voluntary act), and that an employee <em>must</em> sign essentially under the threat of not receiving severance pay and benefits if they don't (i.e. they &quot;voluntarily&quot; sign it in the same way they &quot;voluntarily&quot; don't drive head first into oncoming traffic), this seems like a curious thing to state: It does not seem that the employee is <em>really</em> voluntarily signing it under their own free act. They kind of have to sign it, or they're hosed.</p>
<p>My questions are:</p>
<ol>
<li>What does this language protect the company against?</li>
<li>What employee rights does this forfeit if the employee signs?</li>
</ol>
<p>That is, what purpose does this language serve?</p>
<p>The reason I am wondering is: There are many contracts <em>without</em> this language, are those contracts therefore not protected against claims that signing them was forced? For the implication that &quot;if you don't like it don't sign it&quot;, isn't that true of any contract even without this sentence? If the company didn't put this language in, it seems like it would be similar to any other typical contract that also does not have this language, so if it was a generally required protection I would expect to see it all the time. What could make this agreement different as to require that statement?</p>

<p>The &quot;Severance Agreement&quot; is a contract between the company and you.  It spells out what the company will do and probably what they expect you to do going forward.</p>
<p>Simple enough.</p>
<p>The statement you referenced merely says that you are not being forced to sign the agreement.  That's all.</p>
<p>You don't, presumably, have the option of remaining employed at this company but you DO NOT have to sign this agreement.  But if you don't, it's likely that any benefits being promised in the agreement will not be delivered to you.</p>
<p>So specifically in answer to your questions:</p>
<ol>
<li><p>It protects them against a claim that they somehow forced you to sign the agreement.</p>
</li>
<li><p>Likely anything that the agreement says the company will do such as pay you a certain amount of money and the like.</p>
</li>
</ol>
<p>Bottom line is that if you don't like the agreement, don't sign it.  If you want the benefits they are promising in the agreement, then sign it and move on.</p>

<blockquote>
<p>What does &quot;sign it voluntarily as my own free act&quot; mean? What does this language protect the company against?</p>
</blockquote>
<p>It secures the signer's admission that he is not being subjected to wrongful termination. It is a form of settlement with which the company could refute claims of wrongful termination, breach of contract, or similar.</p>
<blockquote>
<p>What employee rights does this forfeit if the employee signs?</p>
</blockquote>
<p>It depends on the jurisdiction, since each legislation might provide different remedies for labor disputes; whether employment is at-will vs. of specific duration, or termination is for [good] cause; and other terms of the employment contract regarding the method of termination.</p>
<blockquote>
<p>are those contracts therefore not protected against claims that signing them was forced?</p>
</blockquote>
<p>That language is not really necessary. It just tends to make it easier for the employer to refute claims that employee might subsequently file in court or --if mandatory-- for quasi-judicial proceedings.</p>

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