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If you sign the letter it will be legally binding. The decision to sign is yours based on the agreement within the separation and if you think the terms of the separation are in your best interest (in order to get a severance package or other benefits that you would not get without signing the letter). However, if you do not agree with your termination and wish to pursue other remedy than you will not want to sign that letter. You may wish to have the letter reviewed by an employment attorney and discuss your situation with them to see if you should sign and if your separation agreement is fair for you.
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