Feeling Pressured to Sign a Severance Agreement? Here's What You Need to Know About Your Rights

Hi, I resigned from a small 12-member-sized design firm and was asked to terminate my job the following day. I was also pressured to sign a 10-page "Non-Disclosure" and "Severance Agreement and General Release of All Claims" documents on the same day. I refused to sign it until I fully understood the documents. On consulting with a lawyer, I was told that the agreements are one-sided and that they would harm my future prospects in the industry.

Questions Regarding Legal Obligations

I have several questions:
1. Am I legally bound to sign these documents?
2. The severance agreement document does not offer me a severance package. What is required by Indian law?
3. The company is threatening to hold back my paycheck and the relieving letter. What action can be taken from my end?

Thank you in advance for taking the time to go through this.
Regards

Understanding Employment Agreements Upon Leaving

When leaving a job, the requirement for signing an agreement may not always be clear. To my understanding, any agreement that restricts you from taking up employment elsewhere is illegal. However, it's advisable to follow the directions of the lawyer you have already consulted about the matter.

Regards,
Madhu.T.K