Severance Agreements

Protecting both employers and employees during transitions

Three black diagonal lines.

End Employment Relationships on Solid Ground

Customized severance agreements for Houston businesses and professionals

A well-drafted severance agreement provides clarity and protection for both employers and employees during the termination of employment. At Lindholm Law, we help Houston companies and individuals create fair, enforceable agreements that minimize risk and set clear expectations. Our goal is to make transitions smoother, reduce the chance of disputes, and ensure all parties are treated respectfully and legally.

Three black diagonal bars on a white background.

Understanding Severance Agreements in Texas

Key considerations for employers and employees

In Texas, severance agreements are not required by law but are widely used to provide financial security and reduce legal risks during terminations. For employers, they help avoid future claims by clearly outlining compensation and obligations. For employees, they offer financial stability and clarify post-employment terms.



Houston’s diverse business landscape makes it essential to tailor severance agreements to each situation. At Lindholm Law, we ensure contracts are compliant, fair, and designed to protect the interests of both parties. Our balanced approach helps maintain professionalism and reduces the risk of litigation.

Common Questions About Severance Agreements

Thorough answers for Houston employers and employees

  • Why should I use a severance agreement when terminating employment?

    A severance agreement provides a clear understanding of post-employment obligations and compensation. It protects employers from future claims and gives employees financial security during transitions. We draft agreements that are fair, compliant, and tailored to each situation.

  • Are severance agreements enforceable in Texas?

    Yes, when properly drafted. Texas law requires clear language and voluntary consent from both parties for enforceability. We ensure your agreements meet all legal standards and protect your interests.

  • What should be included in a severance agreement?

    Key elements include compensation terms, release of claims, confidentiality clauses, and any post-employment restrictions. Including these provisions creates a clear roadmap for both parties and reduces the risk of misunderstandings. We customize agreements to fit your business and circumstances.

  • Can employees negotiate severance terms?

    Yes, employees often have the opportunity to negotiate terms, including compensation and benefits. We assist both employers and employees in creating and reviewing agreements to ensure fairness. Our goal is to achieve a balanced outcome that respects both parties.

  • Do severance agreements need to include non-compete clauses?

    Not always, but they can be included to protect business interests. In Texas, non-compete clauses must be reasonable in scope and duration to be enforceable. We advise on whether adding such provisions is appropriate and draft them to comply with state law.