severance agreements

the right to fully understand severance and release agreements

Sometimes, an employer will offer a severance benefits as part of an employee’s termination. Generally, a severance agreement will provide a monetary sum in exchange for the employee’s release of all claims an employee may have against the employer. Since a severance agreement is a legal contract between the employee and the employer, the employee has the right to fully review and consider the arrangement.

are employers required to provide severance?

As a general rule, employers are not required to provide severance benefits unless there is a pre-existing commitment to do so, either under a written policy or employment agreement. Generally, therefore, severance pay agreements are at the company’s discretion and offered in an exchange for a release of all claims.

what is a release of claims?

The release of claims included in a severance agreement means that the employee is waiving any and all legal claims that the employee might have against the company. Getting offered a severance agreement does not mean that the employer believes that the employee has potential actionable claims. However, employees are advised to review these agreements carefully before waiving their rights to future action.

what should i do if i receive a severance agreement?

Various laws impact severance agreements, including what claims can and cannot be released. Further, under the Age Discrimination in Employment Act (ADEA), an employer must give an employee at least 21 days to consider the waiver (and at least 7 days to revoke the agreement). Before signing the release, you should determine whether you have potential claims. If so, it may be possible to negotiate a better severance package or you may consider turning down the severance payment in order to pursue your legal claims.

employment contracts

the right to fully understand your rights under employment agreements

You may be in a situation where a new or existing employer is offering you an employment contract. These documents can contain a large amount of information that may seem confusing. Once you sign a contract, barring certain circumstances, you will be bound by its terms. Therefore, make sure that you understand what you are signing and that all of the terms and conditions are clear to you.

are non-competition agreements enforceable in texas?

Employers in Texas can use non-competition agreements. To be enforceable, these agreements must be supported by valid consideration and include reasonable limitations on temporal and geographic scope as well as the activities your employer seeks to restrain. Before entering into a non-competition agreement, you should understand the terms. Similarly, if you have left an employer with which you entered a non-competition agreement, you should consider the terms of the agreement before accepting new employment that might violate terms. Litigation related to breaching a non-competition agreement can be costly and burdensome.