Severance Agreements for North Carolina Clients
When the employment relationship comes to an end, the employee may have an uncertain financial future, and has to consider many things very quickly. One of these things that occasionally occurs is whether the employee will sign a severance agreement drafted by the employer.
The Severance Agreement, often called a Separation and Release Agreement, often gives the employee some type of compensation and perhaps some health benefits in exchange for many non-economic things, such as a release of claims, confidentiality, and non-disparagement. There also could be a non-compete provision in the agreement which takes away your ability to work for a period of time. Given the complexity of these agreements and the short window of consideration, it’s not uncommon for an employee to seek a review by an attorney.
Some severance plans are covered under ERISA, are subject to many rules regarding eligibility, and include appeal rights if you are denied severance. However, most severance agreements are the result of a voluntary act on the part of the Employer. Many do so as a gesture of good will to a departing employee, some do it to thank the employee for their years of service or for the accolades they received when they were employed. Others provide severance to protect their reputation or to eliminate the possibility of being sued by the employee.
A recipient of severance is often giving up many rights, and it is advisable to seek legal counsel to review the severance agreement with you. In fact, the severance agreements often state that you have been advised to seek counsel and have sought counsel to the extent you wanted.
The Employment Law Attorneys at Hopler & Wilms can review your severance agreement, consult with you about your severance package, and often negotiate severance on your behalf.
