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What should be in your severance agreement?

by Hoyer Law Group, PLLC | Oct 9, 2022 | Employment Law

When you were hired by your current employer, it is likely that you negotiated details in your employment contract, such as your salary and the benefits you would receive. These negotiations are common during the hiring process, and many may not realize that they can often do the same thing when they leave their current employer. Whether you are leaving your company by choice or by the choice of your employer, you will benefit from understanding what you can do to protect your interests. 

Severance agreements are often an important part of leaving a company for any reason. These agreements can outline terms on any financial compensation you will receive and other benefits the company may provide you. It is possible to negotiate these terms, seeking a beneficial outcome to a less-than-ideal situation. As with any type of legal agreement, prudent thinking is critical before agreeing to terms and signing on the dotted line. 

Fighting for your future 

A company may offer an employee a severance agreement in certain situations, such as during layoffs or after other unavoidable changes. Your termination may not be voluntary, but there are ways you can ensure that the conditions of this decision are as beneficial as possible for you. When reviewing the terms of your severance agreement, you will want to ensure the following terms are included: 

  • The purposes of the agreement and the intent of the company to provide you with financial recompense 
  • Specific details regarding the types of employees that are eligible for severance pay 
  • Amount of severance pay, duration of payments and benefits that you will be able to retain 
  • Retention of retirement benefits and any pension that you have through the company 
  • Continued use of certain company perks and the conditions of your termination announcement 

You will want to consider the details that are most important to you when negotiating the terms of your severance agreement. As with any important legal contract, you will want to carefully review all terms before you agree. 

Standing up for your interests 

Termination from your current employment can feel like a detriment to your career, but it is critical to keep your focus on what will matter most long-term. When offered a severance agreement, negotiate terms that will provide you with financial security and other benefits that will prove important during this time of transition. You may benefit from speaking with a knowledgeable professional about the details of your case. 

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