Severance agreements are contracts between employers and employees that outline the terms of separation from employment. These agreements often include compensation, benefits, and other provisions that affect an employee’s post-employment status.
Key Elements of a Severance Agreement
Common provisions found in severance agreements include:
- Severance Pay: A lump sum or continued salary payments for a specified period.
- Continuation of Benefits: Extended health insurance or retirement benefits.
- Non-Disparagement Clauses: Restrictions on making negative statements about the employer.
- Non-Compete and Confidentiality Clauses: Limitations on future employment and disclosure of company information.
- Release of Claims: Employees may be required to waive legal claims against the employer.
Are Severance Agreements Negotiable?
Yes, employees have the right to negotiate severance agreements. Factors to consider include:
- Fair Compensation: Ensuring severance pay reflects length of service and contributions.
- Legal Rights: Understanding the implications of signing a release of claims.
- Restrictive Clauses: Negotiating non-compete and confidentiality terms to ensure career flexibility.
Steps to Take Before Signing a Severance Agreement
Employees should take the following precautions before signing:
- Review the Terms: Carefully read the agreement and understand all provisions.
- Seek Clarification: Ask for explanations regarding any unclear clauses.
- Consult an Employment Lawyer: A legal professional can help negotiate more favorable terms.
Legal Assistance for Severance Agreements
At Castronovo & McKinney, Employment Law Attorneys, we assist employees in reviewing, negotiating, and challenging severance agreements to ensure they receive fair treatment.
Contact Castronovo & McKinney, LLC
If you need legal assistance regarding a severance agreement, contact us today:
New Jersey Office:
71 Maple Ave, Morristown, NJ 07960
Phone: 973.920.7888
Fax: 973.920.7924
New York Office:
420 Lexington Avenue, Suite 1830, New York, NY 10170
Phone: 646.755.3781
Fax: 646.755.3781
Email: info@cmlaw.com
