The Importance Of Severance Agreements
A severance agreement is a contract between an employer and an employee who is soon to leave the company. Most severance agreements provide the departing employee with pay and/or benefits in exchange for something of value to the employer, such as:
- Confidentiality regarding products, business systems, etc.
- An agreement not to compete
- An agreement not to sue
If you need legal guidance for a severance agreement or any employment law matter, The O'Meara Law Firm, PC, is here to protect your rights. We have extensive experience representing employees and employers in employment law matters in Coatesville and throughout southeastern Pennsylvania.
Before signing a severance agreement, you should be certain of what rights you are waiving. If you are leaving due to workplace harassment or other unlawful employment practices, for instance, relinquishing your right to sue may not be worth whatever compensation you are receiving.
A restrictive noncompete cause could hurt you financially if it limits your ability to find future employment. You must weigh all of these costs against the benefits the company is offering you.
By talking with an experienced employment law attorney, you can gain a better understanding of your position and then sign, reject or negotiate for better terms.
A well-drafted severance agreement is a sound investment for employers seeking to hedge against the potential expense and liability associated with a key employee’s departure. Failure to have solid agreements in place could expose your company to the risk of lawsuits. Without noncompete and confidentiality agreements in place, employees holding valuable company secrets would be free to sell that information to the highest bidder.
We can help you draft, review and negotiate severance agreements that allow you and your employees to cut ties without lingering concerns.
Contact Us For Experienced Employment Law Guidance
Whatever your position, you can benefit from the advice and advocacy of an experienced employment law attorney. To discuss severance agreements and other employment law issues, contact our law offices online or by telephone at 610-466-5081.