Our Louisville Separation Agreement Lawyer Discusses Separation/Severance Agreements
Your boss comes into your office, closes your door, and drops the news: you’re being let go. Your boss then slides over a package, asking you to sign it. Inside contains a document known as a Separation or Severance Agreement. Should you sign it? Before you do, you should discuss your options and rights with an experienced Louisville separation agreement lawyer.
What Is a Separation/Severance Agreement?
A separation, or severance agreement is a contract between the employer and the exiting employee that sets limits and restrictions as to what you may communicate or do in exchange for something of value, called consideration.
What Am I Agreeing to?
A Louisville separation agreement lawyer has frequently seen the following terms in a separation agreement:
- Release of all claims. This means you can’t sue your employer for any reason, including:
- Wrongful termination
- Hostile work environment
- Sexual harassment
- Non-disparagement clause. This requires you to refrain from bad mouthing your employer.
- Agreement to not apply for another job within the company. In certain circumstances, employers may require that you refrain from submitting an employment application for your former position or another position within the company.
- Confidentiality, trade secret and proprietary information clause. If you were privy to your employer’s confidential, trade secrets, and proprietary information, then this clause requires you to return all information, documents, etc. in your possession and refrain from divulging this information to anyone.
- Non-compete and non-solicitation clauses. Employers may also require that you refrain from competing with their company or soliciting their employees, customers, potential customers, vendors, etc. Such restrictions should be limited in duration and geographical area.
What Do I Get?
For agreeing to these restrictive terms, you must receive consideration. Your employer cannot offer you your last paycheck and/or payment of your unused paid vacation as consideration because that is your employer’s legal obligation. Rather, your employer must provide you with additional payment, such as a severance pay.
Should I Sign It? Ask a Louisville Separation Agreement Lawyer
If you received a separation agreement, you should request the opportunity to have the agreement reviewed by your attorney. We will review the separation agreement and discuss your concerns, ensuring you are fully informed of your rights before you decide to sign the separation agreement. Contact a Louisville separation agreement lawyer with Patricia A. Abell Law Office at (502) 561-3455.