A severance agreement is an agreement letter that is provided by the employer to the employee. In this letter, the employee’s severance pay, continuation of benefits, and other gifts are mentioned. However, every employee must ensure that he/she is aware of the legalities of severance agreements.
In Connecticut, an employee must understand the specifics of the severance agreement thoroughly since this letter is crucial when the employee is about to lose his/her job. Therefore, if your employer hands over your severance agreement to you, you must consider seeking professional assistance from a trusted Connecticut severance package lawyer.
Your attorney will make sure to go through the agreement and will provide you with invaluable insights regarding the conditions mentioned in your severance agreement. Hence, you can also set up a negotiation meeting with the employer.
Why do employers offer severance agreements?
- Legal protection.
A severance agreement is a sort of legal protection for the employer and the establishment. In this agreement, it is stated that the employee will not file a lawsuit against the company for illicit termination, prejudice, or other employment-related problems. However, once the employee signs the agreement, it becomes crystal clear that the company will not have to file a suit against the certain employee.
- Smooth transitions
For employers, a severance agreement also ensures a smooth transition since the employee will not wreak havoc in the firm because of the conditions and benefits mentioned in the agreement. Hence, this will not affect the working environment and keep a cool aura.
- Reputation management
Every company attracts employment through a severance agreement since it shows the employees that the certain company takes good care of their employees even if they are terminated or leaving their jobs. Thus, this trick enhances the reputation of the company.
Key components of a severance agreement –
- Severance pay
Severance pay is an amount that you will be given for a course once you are terminated from your job. The severance pay of an employee often depends on the amount of time that he/she is investing and what position the employee holds. This will decide in what figures the severance pay will be.
- Benefits continuation
The advantage of continuation is the second-best offer a company can provide you. Mostly, every firm provides continuing benefits such as health insurance, stock options, and other benefits. However, this continuation of benefits will only last for a period.
- Non-compete and non-solicitation clause
Severance agreements also include a non-compete and non-solicitation clause, which cites that the terminated employee cannot work with the rival firms or cannot summon the clients or the employees of the firm for a certain course.
- References
The company or the employer will make sure that the future of the departing employee is safe and secure. Hence, the company will take care of references and write a good report for the terminated employee so that finding another job will be easier.
Legal consideration for employees –
- Review the agreement
The first and foremost thing an employee must do after receiving the severance agreement is to review it carefully and thoroughly. Thus, the employee needs to understand all the conditions and terms of the agreement before signing it. Thus, it is recommended that a legal advisor be alongside.
- Consult your legal advisor.
Employees must make sure that they consult their lawyers regarding the severance agreement. A legal representative will be more helpful since he/she will make sure to go through the agreement and explain all its complexities.
- Negotiation
Once the employee has been through the agreement, if he/she needs to make some demands regarding the agreement, then it is negotiable. The employee must make sure to negotiate with the employer by keeping his/her priorities in mind.
The legalities of severance agreements can be daunting; hence, seeking professional assistance will help you go through it.
