A general release of all claims is a binding and enforceable contract
A general release of all claims is a contract usually entered into at the end of a lawsuit and is negotiated by the opposing attorneys on behalf of their respective clients.
In such release agreements, the plaintiff agrees to give up valuable legal rights against the defendant in exchange for a specific sum of money. This is common in personal injury settlements.
General releases are often used in employment disputes and wrongful termination cases where the employer is alleged to have committed certain employment violations against the employee plaintiff. The violations may have included sexual harassment and discrimination claims involving but not limited to an employee’s gender, age, and race.
In employment matters, a general release is usually dressed up as a mutual separation agreement involving severance pay. This is a notorious tactic used in employment termination cases where the employee is unaware that they are signing a general release of all claims. You should consider retaining an employment lawyer to look over the proposed severance agreement and make sure you understand that by signing the contract, you will be giving up all past, present, and future claims against the employer
