Many employees think their former employer is doing them a favor by giving them a severance agreement. The truth is, you are not receiving severance as a thank you. There are many reasons employers send employees out the door with a severance package, and some of those reasons are not always obvious. A seasoned employment lawyer can help you navigate all that your severance package stipulates and help guide you before you sign it. Below are the top three reasons to hire our employment law firm in New York City and Cleveland to look over your severance agreement.
You may not be getting full value
Your former employer is not offering you severance to be nice. Rather, they are offering you severance in exchange for your promise to never sue the company. Unless you know exactly what your lawsuit against your former employer could be worth, you will never know if you are getting full value for your signature.
Our experienced employment attorneys specialize in all aspects of severance agreements, including valuing whether the severance is fair in light of all of the circumstances.
There may be strings attached
Not only are you being paid to not sue, but some severance agreements also sneak in other clauses such as non-competes, non-solicits, cooperation or non-disparagement clauses, which further limit what you can do in the future. You need to know what rights you are giving up before you sign.
You could be leaving money on the table
Everyone thinks out the money offered in a severance agreement, and this is important, but there are other significant benefits to consider as well, such as:
- Cobra / Insurance
- Outplacement services
- Unemployment
- References
- Restrictive Covenants (non-compete, non-solicit, etc.)
Before you sign a severance, you should consult with an employment lawyer who specializes in severance agreements to make sure that you are getting full value for the claims you are waiving and full knowledge of the rights you are giving up. Questions? Please call or e-mail us at any time.