Below is an article I have written regarding severance
agreements in Florida. While it sets forth general
information, no two severance agreements (and their surrounding
circumstances) are the same. Please feel free to call me to
discuss your particular severance package.
Severance Agreements – What You Should Know
With the downturn in the economy, more and more
employees are being laid off. Sometimes an employee
will have an employment agreement that sets forth the terms of any
severance in advance. However, in the absence of an
employment agreement, the employer is not obligated to provide any
severance to the employee. Nevertheless, you may find
yourself in the situation where you don't have an employment
agreement (or your employment agreement doesn't address severance
issues) and your employer still offers you a severance package.
A severance agreement will typically address the
following issues:
-
Severance compensation - i.e., the amount of money
that you are going to be paid as severance.
-
Treatment of unused vacation and sick time.
-
Return of company property
-
Last day at work
-
Release of company from all claims that you may have
-
Restatement of your awareness of any
non-compete/confidentiality agreement that you may have signed
when you joined the company (or at some point during your
employment)
-
A non-compete and/or confidentiality agreement, if
you never signed one before.
Be sure to have an attorney review the agreement
before you sign it. The attorney can discuss the
effect of the agreement with you. For example, he or she
will be able to explain the scope of any non-compete and the
impact that it will have on your ability to find work.
Similarly, if you believe that you may have claims against the
company (e.g., discrimination or wage claims), you should discuss
them with the attorney in order to evaluate their strength in
comparison to the severance package that you are being offered.
Above all, take a deep breath when offered a
severance package. Ask for some time to consider it.
Most companies will allow this and, under certain circumstances
the law requires it. Read it over carefully with a lawyer
and only sign it when you feel comfortable with its contents and
effect.
