As a law firm, we understand that terminating an employee can be a difficult decision. In order to ensure a smooth transition and protect both parties, severance agreements may be put in place. A severance agreement is an agreement between an employer and an employee in which the employer agrees to pay the employee for a certain period of time after their employment ends in exchange for the employee waiving their rights to sue the employer or other benefits. It is important for employers to review their severance agreements to make sure they are up-to-date and compliant with applicable laws. With the ever-changing employment laws and regulations, employers should review their severance agreements regularly to make sure they are in line with the latest laws. When reviewing severance agreements, employers should consider the following:
- The notice period – Does the agreement provide adequate notice to the employee in the event of termination?
- The compensation – Is the employee being compensated for the appropriate amount of time?
- The waiver of rights – Does the agreement contain a waiver of the employee’s right to sue the employer?
- The non-compete clause – Is the non-compete clause reasonable and compliant with applicable laws?
- The release of claims – Does the agreement contain a release of claims by the employee?
- The confidentiality clause – Does the agreement contain a confidentiality clause that is reasonable and compliant with applicable laws?
Our firm has handled countless severance agreements on behalf of employers and employees. Give us a call if you’d like to schedule a consultation to discuss your options regarding a severance agreement