And I was soon informed that the president wished to assure me that there is nothing unusual about such clauses Whoop whoop whoop! This sets off giant alarm bells in my head. It might be totally normal. That doesn't mean you should sign it. It's also an older-than-dirt salesman tactic to say that something you just made up is "totally common." Of course, the company can attach whatever clauses it wants to a separatio…
Depending on where you are, "severance", or the 2-week pay after you have been told you do not have a job anymore, may or may not be a worker's right.
[0] Actually, where the company was based we don't know which employment laws applied to his contract without reading it. You can be a California resident employed by a Delaware corporation operating out of California and your contract can still be subject the the employment laws of a third state. I'm not entirely sure how this actually works in practice, but I know it is done.
EDIT Some quick Googling found this website, which has some interesting information (albeit a rather terrible layout): http://www.careerprotection.com/severancepay.html