Severance Agreements: What You Need to Know
Severance agreements are contracts that outline the terms of employment termination, often including compensation, benefits, and other post-employment conditions. Understanding your rights and obligations before signing is crucial to ensuring a fair agreement.
Key Elements of a Severance Agreement
Severance agreements typically include the following provisions:
- Severance Pay: Compensation offered upon termination.
- Health Benefits: Continuation of healthcare coverage for a set period.
- Non-Disclosure Agreements (NDA): Restrictions on discussing company information.
- Non-Disparagement Clauses: Prohibitions against making negative statements about the employer.
- Release of Claims: A waiver preventing the employee from suing the employer.
Are Severance Agreements Enforceable?
The enforceability of a severance agreement depends on various factors, including:
- Voluntariness: The employee must not be coerced into signing.
- Legality: Agreements cannot waive certain legal rights, such as unpaid wages or discrimination claims.
- Fair Terms: Excessively restrictive clauses may be invalidated by courts.
What to Do Before Signing a Severance Agreement
Before signing a severance agreement, follow these steps:
- Review the Terms: Understand the compensation, benefits, and restrictions.
- Negotiate if Necessary: Ask for modifications to terms that seem unfair or overly restrictive.
- Consult an Employment Lawyer: A legal professional can help ensure the agreement protects your rights.
Legal Assistance for Severance Agreements
At Castronovo & McKinney, Employment Law Attorneys, we help employees review, negotiate, and challenge severance agreements to ensure they receive fair treatment.
Contact Castronovo & McKinney, LLC
If you need legal assistance with 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