When an employee is terminated, an employer may offer a severance or separation agreement. Even if the employer does not make such an offer, the employee may seek one. But what is a severance agreement and how can it help you?
A severance is an agreement between the employer and the employee in which he employer pays the employee money in exchange for a waiver of claims from the employee. An attorney will help you understand the potential claims you are releasing and negotiate on your behalf to improve any potential severance amount.
The money and the waiver of claims are only a few provisions that are commonly found in many severance agreements, but there are other provisions that should be carefully considered. These may include for example:
- a neutral reference;
- non-compete agreements;
- release from a non-compete agreement;
- continuation of health insurance coverage;
- an agreement not to challenge unemployment benefits;
- confidentiality agreement;
- an agreement to keep the terms of any agreement confidential;
- promise to return company property;
- cooperation clause
Each of these provisions can have a profound impact on how you move forward onto your next career opportunity. It is important to work with an experienced Severance attorney to ensure you are maximizing your benefits.
If you are considering leaving your employment or have been offered a severance our employment attorneys can help to negotiate the best possible deal.Contact Maduff & Maduff for more information today.