When your employment has ended, an Employer may choose to offer a severance package. Employers are not generally required to offer their employees severance upon termination of the employment relationship. However, employers will often consider the circumstances on a case-by-case basis to determine if they will offer any type of severance pay and may consider a number of factors. Some reasons that an employer can choose to offer severance pay can be as a gesture of good will, or as an insurance policy against the possibility of future legal claims by the employee.
Generally, severance agreements compensate employees at the end of their employment relationship with the employer, and can provide some financial stability during the employee’s transition from the company. Often, in exchange for this compensation, severance agreements will contain language which releases the employer from legal liability stemming from the employment relationship and may even impose new obligations on the former employee, including things like a promise to not re-apply, to maintain confidentiality of the information at the employer, or to refrain from certain work or activities. Like an employment contract, each party has rights and the agreement can be enforced in court, often for damages as specified in the release.
If you have received a severance agreement from your employer and wish to have it reviewed, contact Jensen Law Office, LLC to arrange a meeting to discuss your employment history, the circumstances of your departure and review the severance document for the legal rights and claims that you are releasing.