Outten & Golden attorneys advise clients about severance agreements, explaining complex provisions in proposed agreements and identifying both legal and non-legal leverage for negotiating more favorable terms. We advise individuals who negotiate those terms themselves, and we also negotiate directly with employers on behalf of our clients.
A severance or separation agreement is a contract between an employer and an employee that sets forth the terms of an employment termination. Such an agreement typically specifies what severance benefits the employee will receive from the employer, such as continuation of salary and medical benefits for a period of time and/or a lump sum payment representing severance pay and accrued bonus compensation. In exchange, the agreement typically includes a general release by the employee of all claims against the employer; the agreement may also include promises by the employee not to disparage the employer, to cooperate with the employer post-employment, to refrain from soliciting clients and employees, and/or to refrain from competing against the employer for a period of time.
For more on such agreements, see the discussion of settlement agreements.