Alex Should I accept severance?
Employees are under no obligation to accept the severance an employer offers, or to sign the agreement that usually accompanies a severance package. However, in most cases, an employer is free to condition severance on the employee signing the agreement.
What should be included in a severance agreement?
A severance agreement is a contract between an employer and an employee that contains rules and guidelines for when an employee is terminated. A severance agreement template should include details like how much pay the employee will be entitled to after termination, when benefits will be discontinued, etc.
What happens if I refuse to sign a severance agreement?
When an employee signs a severance agreement, it is usually accompanied by a release or waiver that relinquishes your right to sue the company. If you received a severance package without signing a waiver or release, you can sue your employer. Can I refuse a severance package? Yes.
Are there any traps in a severance agreement?
And employees often ask for a “mutual” non-disparagement clause. Agreeing to such a mutual non-disparagement clause, without carefully drafting the language, can be a dangerous trap for employers. A mutual non-disparagement clause in which “the Company agrees not to disparage the employee” is almost impossible for the Company to honor.
Why do employers ask for no rehire clauses in severance agreements?
It is very common for employers to request this provision — often called a “no rehire” or “never darken my door” clause — and there can be a good reason for the request. Your employer is giving you a severance agreement because it wants finality. In other words, it’s paying you money so it doesn’t have to worry about you again.
A severance agreement is a contract between an employer and an employee that contains rules and guidelines for when an employee is terminated. A severance agreement template should include details like how much pay the employee will be entitled to after termination, when benefits will be discontinued, etc.
Can a company take an employee to court for severance?
By having a legally binding contract, the employee cannot take the employer to court. On the other hand, providing severance pay to an employee – though it helps get the contract signed – can be seen as a gesture that the employer cares about the future success of the employee.
And employees often ask for a “mutual” non-disparagement clause. Agreeing to such a mutual non-disparagement clause, without carefully drafting the language, can be a dangerous trap for employers. A mutual non-disparagement clause in which “the Company agrees not to disparage the employee” is almost impossible for the Company to honor.
When an employee signs a severance agreement, it is usually accompanied by a release or waiver that relinquishes your right to sue the company. If you received a severance package without signing a waiver or release, you can sue your employer. Can I refuse a severance package? Yes.