Severance Agreements are contracts drafted by an Employer towards the end of a relationship with their Employee. A severance agreement can sometimes be called a separation agreement, termination agreement, waiver and release of claims agreement, in addition to other similarly phrased terms.These agreement will generally ask of the Employee to promise not to bring any future lawsuits against their past employer. For the agreement to valid there must be consideration; in other words, there needs to be an exchange of some sort of value between the parties. Typically this means a lump sum payment to the Employee and in exchange a host of promises made by the Employee to their Employer.
Do I need an Attorney for a Severance Agreement?
Nearly every severance agreement will have a clause that advises the Employee to seek legal advice. Put differently, the Employer to affording the Employee the ability to first get the advice of an attorney before signing the contract.
What is the average amount offered to an Employee in a Severance Agreement?
Not all Employers will offer such contracts and in general each industry or company will have unique methods towards drafting such agreements. However the amount offered will generally depend primarily on the length of employment (how many years you worked there) and the current rate of pay or salary.
What rights am I releasing?
A California employer cannot ask an employee to waive claims pertaining to:
- Minimum wage
- Unemployment insurance benefits
- Workers’ Compensation benefits.
A severance agreement containing a general release of claims including any of the above is not enforceable. Eldessouky Law has successfully negotiated significantly higher payouts with respect to severance agreements. In addition to obtaining more money for our clients.