Severance Packages: Understanding Your Rights
Severance agreements and separation agreements (a.k.a., severance packages) are agreements between an employer and its past employee, traditionally entered into at or shortly after the employee departs employment. Such agreements seek to bring a full, final and complete resolution to the employment relationship, including any disputes or perceived disputes existing between the parties.
What’s Included in Severance and Separation Agreements
Severance and separation agreements ordinarily involve payment (frequently financial) from the employer to the employee in exchange for certain promises from the employee. Such agreements may also involve the employer’s agreement to subsidize employee insurance benefits or other benefits for a specified period of time post employment, promises not to oppose unemployment insurance for the employee, promises to provide the employee with a neutral or favorable employment reference among other such promises and agreements.
Employee Obligations in Severance Agreements
In exchange, employees may be required not to bring legal claims against the employer, agree not to speak or communicate negatively about the employer, and may also be required not to disclose certain of the employer’s information or even agree not to compete with the employer or solicit its customers.
Why You Need Legal Review of Your Severance Agreement
Severance agreements and separation agreements are legally binding documents and usually drafted by the employer’s attorneys. For these and other reasons, individuals considering such agreements are encouraged to have them reviewed by skilled attorneys who can not only provide an evaluation of the agreement, but also evaluate whether the employee may have leverage to negotiate the terms of the agreement.
Employee-Initiated Severance Agreements
It is worth noting that severance agreements and separation agreements are not always initiated by the employer; employees may request them as well.
If you are considering such an agreement or would like to request one, contact the attorneys at Kuhn Law for a comprehensive review of your circumstances, any potential agreement, and a discussion of your options moving forward.
Before signing anything, speak with a Wisconsin attorney who has over 20 years experience with non-compete agreements.
If you’re concerned about the contents of a severance package offered by your employer, contact Kuhn Law for a consultation and get the clarity and reassurance you need.
"Work defines so much of who we are, and when those rights are threatened, I step in. I believe in fairness, dignity, and the power of the law to protect those who need it most."
Martin Kuhn