Termination from your employment can be an emotional and stressful event with potentially long-lasting impacts on your working career. Terminated employees are often required to sign a severance agreement, which is a contract between an employer and an employee that specifies the terms of employment termination.
A severance agreement is a complicated document with multiple provisions that may profoundly impact an employee’s future. Severance agreements need to properly address issues such as:
- Severance pay
- Continuation of health care coverage
- Outplacement benefits
- Confidentiality of the agreement references
- Contestability of unemployment benefits
- Breadth of non-compete restrictions
- The release and a waiver of claims against the employer
Each situation is different and requires a document tailored for the particular employee and circumstances. Both employers and employees should discuss proposed provisions for a severance agreement with an employment lawyer.
Avery Dooley & Noone, LLP provides employment law services to our clients to preserve their legal rights. Learn more about our Employment Law Practice, and contact us if you need legal advice in dealing with your employment situation or a severance agreement.