What do you need to know about severance agreements?
Severance agreements are binding contracts for settling any potential disputes between the parties. It should be understood that the employee will need to pick his or her battles on these issues, as it is unlikely he or she will prevail on all the issues. 1. Severance Pay
When is it time to review your severance package?
(Unless you are the CEO of a large corporation – in unusual circumstances) If you have been at the same company for many years and your severance package seems very low, there is a good chance that it is. Caution! There are many online severance package calculators. These cannot go into the detail of a proper review of your specific situation.
Do you have to sign a release for a severance package?
Accepting a severance package is entirely up to the individual employee. Usually, it is the only way to receive any money beyond what you are owed in terms of wages, vacation pay, and expenses, from your employer. Severance packages often demand you sign a release waiving any right to sue the company or pursue further claims against it.
What should be included in a non disparagement severance agreement?
Non-Disparagement Companies will often insert a paragraph in the severance agreement prohibiting the departing employee from publishing or communicating to any person or entity any “disparaging” remarks, comments, or statements concerning the company.
What do you need to know about a severance agreement?
All severance agreements are an employer’s way of protecting themselves against future legal action. As an employee, you are entitled to certain protections upon your termination under the law, including the right to file a lawsuit against the company.
Where can I get a review of my severance?
Before making any binding agreements about your future, contact the experienced employment lawyers at to review your severance documents. They will ensure that you are making only the necessary concessions in order to reap the greatest benefit. Contact us via LiveChat!
Can a employee refuse to sign a severance agreement?
If the employee cannot understand the terms of the severance agreement they can refuse to sign it. This can also be construed as a way to mislead the employee. You want to use the simplest language you can to make sure that the employee truly agrees with the agreement, making sure that you are in the legal right.
How long does it take to get a severance package?
While individuals have a 21-day consideration period, groups have an extended 45 days to take in all the information. On top of this, the employer must individually provide employees with the following information: The ages of all individuals who are in the same job classification and eligible to receive the severance package