What is a Severance Agreement? | What You Should Know

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What is a Severance Agreement? | What You Should Know

If you were laid off, your employer may offer you a severance agreement. Before signing any documents, it is important to do your research and speak with an experienced attorney. Read on to learn more about severance agreements in New Jersey.

What is a Severance Agreement?

In many cases, when someone is laid off from a job, their employer will offer a severance package. The purpose of such an agreement is to provide the employee with a financial cushion for a certain amount of weeks or months so the employee does not have to worry about funds running out while looking for a new job.

What Can Cause Problems in a Severance Agreement?

Often, employers will include some of the following clauses in a severance agreement. While these clauses are commonplace, they can be unfair to an employee. As a result, it is important to understand these clauses and what they entail:

  • A proprietary information clause: These clauses protect any confidential information you’ve received regarding your company.
  • A non-disparagement clause: These clauses are included so that employees cannot publicly speak negatively about anything having to do with the company after leaving.
  • A non-solicitation clause: This prevents employees from recruiting or otherwise hiring co-workers from the company that laid them off.
  • A non-compete clause: These clauses prohibit people from seeking employment from direct competitors of their former employer for a certain amount of time.
  • A release of legal claims: This clause prevents employees from making any sort of wrongful termination claims against their former employers. If you believe you have been wrongfully terminated, you should not sign an agreement that includes this clause.

Do I Need the Help of an Attorney When it Comes to Signing a Severance Agreement?

Often, severance agreements can seem too good to be true. As a result, it can be tempting to sign right away. But, as stated before, these agreements can be unfair and have clauses that can hurt employees in the future. As a result, it is best to speak with an experienced employment law attorney. It is important to advocate for yourself and ensure that your severance agreement is fair.

If you have any questions or concerns about severance agreements in New Jersey, reach out to our firm today.

Contact our Firm

The dedicated and compassionate attorneys at Vigilante Law Firm, P.C. would be happy to provide you with assistance in your case and help you protect your future when so much is on the line. Contact us today to schedule a consultation so we can assess the specific circumstances surrounding your lawsuit.

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