My employer wants me to sign a severance agreement or a release, what is the effect of doing that?

Never ever sign a severance agreement or a release until it has been reviewed by an employment lawyer. In most cases signing such an agreement can end your claims. These agreements can be hard to understand and can affect your right to make a claim against your company and your rights to receive unemployment. Many times a lawyer can help you negotiate these agreements to your benefit. Signing any document that your employer gives you can be very dangerous for you to do without legal advice. This is especially true for severance and/or release agreements.