When you leave a job, whether it’s by choice or not, you want to make sure that you’re protected. Severance agreements typically include provisions for financial compensation, the continuation of benefits, and the release of liability. To someone that’s not a lawyer, those words can be confusing. You want to be sure you know what they mean. A qualified employment lawyer can easily review your severance agreement and translate what it says and what it doesn’t say.
It’s important to make sure that you understand everything in the severance agreement before signing it. Otherwise, you may be inadvertently agreeing to something that is not in your best interests. In this blog post, we will discuss 5 reasons why you need an attorney to provide you with a thorough severance agreement review.
Severance Pay
Severance agreements can be a great way to receive financial assistance as you transition out of a job. When you are negotiating your severance agreement, it is important to keep in mind what you need in order to move on. Make sure that you are compensated for all of your work, and that you have the resources you need to start your next chapter.
The severance agreement should include a clause that requires the employer to fully reimburse you for any expenses. The agreement should also cover payment for unused vacation time or sick time. This will help to ensure that you are compensated for all of your work.
The severance agreement can also spell out the terms of your health insurance coverage. If you are entitled to continued coverage under COBRA, the agreement should say so. If not, it should state how long your health insurance will continue, and what you will need to do to maintain coverage.
An employment lawyer can review your severance agreement and tell you if these clauses are included. If they’re not, you should negotiate for them.
Waiving Your Rights
It is important to understand that you may have to sign a release in order to receive severance pay. A release is a document that gives up your right to sue the company for wrongful termination, discrimination, or other claims. If you sign a release, you will not be able to sue the company for any of these claims, no matter how strong your case may be. Before you sign a release, you should talk to an experienced attorney to make sure that you understand what rights or claims you are giving up. And what rights you might be keeping.
Non-Disparagement Clauses
One common provision in severance agreements is a non-disparagement clause. This clause essentially says that you agree not to say or write anything negative or disparaging about the company or your former colleagues.
While it may not seem like a big deal to sign away your right to speak freely, it’s important to think about the long-term implications of such a clause. If you violate the non-disparagement clause, you could be sued for breach of contract. And even if you’re not sued, a negative social media post or an offhand comment to a friend could come back to haunt you down the road.
Having your severance agreement reviewed will tell you if there is a non-disparagement clause and what it covers. This is the best way for you to avoid complications by saying the wrong thing.
Non-Compete Clause
You should also be aware that the company may try to include a non-compete clause in your severance agreement. A non-compete clause is a provision that prohibits you from working for a competitor of the company for a certain period of time. This is a big deal. But non-compete clauses can be difficult to enforce, and they may not even be valid in your state. If the company tries to include a non-compete clause in your severance agreement, you should talk to an attorney before you sign anything.
Understanding the conditions of your non-compete clause allows you to negotiate it or, at the very least, abide by it. Accidentally violating the non-complete clause allows your previous employer to sue you for breach of contract. The only way to avoid this is to know what you can and can’t do. That’s what a severance agreement review is for!
Confidentiality Agreement
Severance agreements usually have confidentiality clauses that prohibit you from discussing the terms of your severance with anyone. If you talk about your severance, you could forfeit your benefits. It’s important to understand the agreement so that you can protect your interests.
Your employer wants to keep the contents of the package confidential so that you don’t talk about it with other employees. Talking about your severance agreement could cause you to lose out on your benefits, so it’s important to be aware of the agreement’s restrictions. By keeping the contents of your severance package confidential, you can protect your benefits and avoid any potential problems.
Of course, the only way to know what you can and can’t say is to have a professional review your agreement and translate the conditions of the clause.
Talk To A Lawyer
Severance agreements can be complex and confusing. Your severance agreement may have all, some, or none of these clauses. Without a thorough review, you may not understand the full implications of what you’re signing. A severance agreement review can help to ensure that you are protected after leaving a job.
If you’re considering signing a severance agreement, be sure to contact an experienced attorney for help. At Sanford Law Firm, our attorneys are up-to-date on the latest developments in employment law. We can help you to understand your severance agreement and negotiate for more favorable terms, if possible. Contact us today to schedule a consultation.