A severance agreement is essentially an outline which details a corporation and an employee’s rights and responsibilities thereunder after the employee leaves the company.
Our New York Employment Law Lawyers counsel our clients that most corporations use severance agreements in order to insulate themselves from potential future claims or lawsuits after the employee leaves the company.
If you are asked to sign a severance package, you should be aware of the risks which include that:
- You may be entitled to more money;
- You could be foregoing your right to future payments;
- Restrictive covenants (ie., by signing it, you could be agreeing not to work in that field, geographical area or with certain clients for a period of time);
- You could be sued for the severance payments which you received if you start new employment;
- You may be waiving the right to ever make a claim against the company - even if the
- claim is just.
Our New York Employment Law Attorneys will review the severance package with you, and after doing so, provide you with an outline of which paragraphs negatively affect you and which should be renegotiated. Following the consultation, you may then retain us to negotiate better terms with the corporation’s attorney.
Each case is different. Some cases can be resolved fairly quickly, while some negotiations can take days or even weeks - particularly when a large payment is at issue.
However, it’s important to understand that all severance agreements are principally for the benefit of the corporation (not you). All are written by the corporation’s attorneys, and you will be asked to waive or give up certain rights, or money, (which you may be entitled to) in exchange for a benefit or payment.
Accordingly, if you or someone you know has been asked to sign a severance agreement, do not do so. Contact an experienced employment law attorney as soon as possible. Our New York State Severance Agreement Lawyers are standing by 24/7 to consult with you.