I represent employees regarding Employment and Severance Agreements. An employment agreement spells out an employee’s rights and responsibilities, including detailed provisions related to separation packages, employee layoffs, confidentiality agreements, non-compete clauses, indemnification clauses, dispute resolutions and severance clauses. If you have received an offer of employment, you may have the option of negotiating the terms of your salary and benefits, as well as an opportunity to negotiate non-economic terms of the agreement, such as when and how the employer can terminate the relationship. Some questions you should ask when reviewing you employment offer:
- Are you guaranteed bonuses?
- Is your employment for a stated duration of time, or are there any restrictions on the employer’s ability to terminate you?
- Does the employment contract contain a “restrictive covenant” clause which prohibits you from working for competitors or from soliciting clients for a period of time after you leave?
- Does the employment contract state that you must participate in alternative dispute resolution, such as binding arbitration, rather then pursuing your rights in court?
- Are you allowed to retain your “intellectual property” or does the employment contract assign such rights to the employer?
- Does the employment contract limit your ability to participate in other business activities outside of work or hold investments?
Severance agreements are more and more common when a company terminates a person’s employment. The signing of a Severance Agreement releases or prevents you from suing your employer for any claims against them that you have, so it is essential to first determine whether legitimate claims exist. Some important things to look for in Your Separation Agreement:
- Did your employer advise you that you have the right to seek the advice of a lawyer before signing it?
- Has your employer provide you with sufficient time to review the agreement?
- Has your employer informed you that you may rescind the agreement even after signing it?
- By signing the severance agreement are you now bound by a prior non-compete or prior confidentiality agreement?
- Did your employer include a clause in the agreement regarding what references will be provided to other employers?
If you are offed an employment or severance agreement, you should be aware of your options and the full implications of your actions. I would be pleased to meet and discuss your concerns with you. There is no charge for the initial consultation.