A severance agreement is a contract between an employer and employee documenting the rights and responsibilities of both parties in the event of job termination. The contract specifies any severance package of pay benefits and the conditions under which it will be provided or withheld. Severance agreements specify what will be provided, as well as terms and conditions under which the employee might forfeit some or all his rights. Money and benefits in a severance package might include, pay in lieu of notice, pay based on a term of employment or the expected period of unemployment, an extension of medical and dental benefits for a specified time period, or Stock options. A voluntary severance package may be offered as an incentive to an employee to resign or retire. If severance is offered, make sure an attorney reviews the agreement. You may be giving up rights you have not considered or may be agreeing to something that will cost you more than the amount of severance. Do you a non-compete agreement? These provisions may limit your ability to get a new job? There are several key legal and economic issues that can be evaluated by an attorney to help ensure you have a reasonable severance package.
Do not hesitate to contact the attorneys at Tishkoff if you have questions regarding business or contract law, or litigation. The attorneys at the Tishkoff law firm, located in downtown Ann Arbor, Michigan, may be reached by phone or email. This contact information is available at Tishkoff’s web site: https://tishold.dream.press/. http://bit.ly/TishkoffPLC
Sources:
https://whatis.techtarget.com/definition/severance-agreement
https://www.ballmanfirm.com/severance-agreements-what-to-think-about-before-you-sign-one.html
16 Key Issues in Negotiating an Employment Severance Package