Severance Agreements
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Severance Agreements
A severance agreement defines benefits offered by a company upon your termination. This is a legal contract which typically requires that you waive all rights to file a lawsuit in exchange for either a lump sum of severance or continuing payments. Other benefits may be offered such as payment for health insurance for a period of time.
Since severance agreements are frequently used to ensure that an employee does not file a wrongful termination suit, it is important to have your attorney review your severance agreement before signing it. Many severance agreements contain non-compete or non-solicitation provisions that can potentially impact your job search. Some of the issues to be considered in a review of a severance agreement are the following:
- Whether you are giving up any potential legal claims
- If there is an opportunity to negotiate for additional compensation
- determining whether there are other benefits that should be added
- Whether there are restrictions on your employment going forward that may impact a job search