If you are in discussions with a potential employer regarding a employment contract, it is important to come prepared. This means not only understanding what is included in a contract being offered, but also understanding options as to what else may be included or excluded in the contract.
Severance terms are an important aspect of the employee contract. A severance package is compensation awarded to an employee at the end of their employment with a company. The purpose of a severance package is two-fold. It provides an employee with benefits such as additional pay or other benefits. In return, employees are often limited in what they may do post-employment. This may mean that they cannot sue for wrongful termination or that they enter into a non-disclosure agreement, a non-solicitation agreement or a non-compete agreement. These are done to protect an employer and his goods or services from being used by the ex-employee with a competitor.
If you are dealing with an employment contract, it may be beneficial to consult employee representation to go over the details of a severance agreement to assure that your needs and wishes are addressed and included in the contract.
A lawyer may also be able to work with an employee to analyze and understand the specifics of a current employee contract between a worker and his or her employer. Employment contracts may be tricky to comprehend; it is in the employee’s best interest to have such contracts analyzed by others to assure that it is satisfactory to the employee.
Source: Findlaw.com, “Severance Packages: Are Benefits, Severance Pay on the Table?“, Accessed on Nov. 29, 2016