Although it is not required to have an employee sign a release before issuing a severance payment, it is recommended. Releases can be complex, and an employee should have the release reviewed by a lawyer. The release must meet legal requirements, and a lawyer can also determine if the release is fair.nnIn exchange for severance pay, an employer may insist that the employee sign a release stating that the employer is free of future potential litigation. There is no need for an employee to sign a release if no severance pay is available. The employee’s last paycheck cannot be used as a consideration for signing the release.