Employee Separation And Severance Agreements

Losing your job for any reason can be extremely stressful, and some employers offer severance packages to help ease the transition to a new job or career. While separation or severance agreements may be welcome, they often require the employee to compromise. For example, the employee will have to agree not to sue the employer.

Typically, the language of a severance agreement includes a recommendation to consult with an attorney to review the agreement before signing. At Farrugia Law Firm, LLC, we encourage our clients to obtain a professional review of their severance and separation agreements. We have an excellent track record of reviewing separation and severance agreements - and procuring more favorable agreements than those initially offered by the employer.

What Severance Agreements Often Include

An employer may use a severance agreement as a goodwill gesture to show appreciation for the employee's hard work, but often employers use severance agreements to serve their business interests.

In addition to a sum of money paid to the employee, a severance agreement may include:

  • Clarification of when the employer will pay money it still owes to the employee, such as with reimbursable expenses and unused vacation time
  • Continuance of employee benefits, such as health benefits and the employee's right to remain temporarily on the employer's medical plan
  • The employee's agreement to release all legal claims against the company
  • A clause prohibiting the employee from making disparaging comments or references about the employer
  • A clause restricting the use of proprietary information
  • Specification that the severance agreement should remain confidential
  • A requirement that the employee will fully cooperate with any investigation or legal proceeding involving the employer

Note: All of these items, including the severance payment itself, are negotiable, and an experienced employment law attorney can help ensure that your severance agreement is fair and appropriate for your situation.

Contact Farrugia Law Firm, LLC

For a review of your separation or severance package, email us or call 504-525-0250 or 866-676-0856. Our law office is located on Poydras Street near the Super Dome in the heart of the Central Business District in New Orleans.

  • AV Preeminent | Over 20 years
  • NELA Since 1990
  • Super Lawyers