Employment Law Questions? Ask an Employment Lawyer.
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I'm sorry to hear about your situation. It is not required that you sign any agreement to avoid suing them in court. It's your right to modify the agreement in a way that makes you comfortable.
As far as them not giving you a severance, this appears to be a violation of the implied covenant (promise) of good faith and fair dealing. Under the Uniform Commercial Code Section 1-304, every contract comes with implied promises from both parties that they are going to be acting fairly toward one another. The failure of one party to act fairly toward the other can result in a breach of contract. To facilitate your situation, there’s a site that I’ve used in the past where you can find a good template for advising of a breach of contract (click here). It's a bit easier (and cheaper) than going through litigation and I have seen it be effective in the past. If you send this letter and they do not respond, then you may want to consider bringing a lawsuit after that because it will be clear they will not be willing to settle the issue.
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