While the thought of a layoff is never easy, some employers will offer a severance package to help alleviate the financial hardship created by the sudden job loss. Severance agreements, however, can be complicated and may cause you to give up your rights if signed prematurely. Therefore, if you have received a severance agreement from your employer, you should consult with an experienced attorney to determine your legal options.
At Shelton Law Practice, LLC, we provide legal services to employees seeking to consult with an attorney after receiving a severance agreement. If your employer has presented you with a severance agreement, it is imperative that you consult with an attorney prior to signing the agreement. Contact our office at (404) 865-3771 to request an initial case evaluation with a valued member of our legal team.
What Is a Severance Package?
A severance package is an agreement between an employer and their former employee that often releases the employer from liability while providing compensation for the employee. Severance agreements are often complex legal documents with a lot of fine print. While you may be eager to sign and accept the payout it is important to remember that you may be giving up certain rights that you cannot get back at a later date.
A severance agreement may include:
- A non-compete clause
- A release of liability
- The amount of pay you will receive
- Information about health benefits and when they will end
- A non-disparagement clause (although it must be limited in scope)
Employers commonly use severance agreements as a tool to limit or eradicate their exposure to liability. Severance agreements also help employers to overall protect themselves from being sued by former employees. Thus, if you received a severance package from your employer, you should have it reviewed by an attorney before signing.
Your Rights as an Employee
As an employee, you also deserve to make sure your interests are protected in any proposed severance agreement. You cannot rely on your employer to protect your legal rights. Nor can you assume that the employer’s proposed severance agreement includes terms that are favorable to you. Refusing to have your severance package reviewed by an attorney can cost you huge amounts of money in the future.
Several factors may affect your severance package:
- Your length of time with the company
- Your position with the company
- The economy
- The health of the company
- The reason for the layoff
Georgia has no requirement that a business provide severance pay upon a layoff or termination of employment. However, federal law prohibits a company from putting in a confidentiality clause that prevents a person from speaking to coworkers about the terms of the agreement. An employer also may not put in a broad non-disparagement clause that silences terminated employees as a condition of receiving the severance.
Were You Offered a Severance Package? Contact Our Office Today.
At Shelton Law Practice, we are experienced in reviewing severance agreements and negotiating severance agreements for employees. Contact us today to learn more about the terms of your employer’s proposed severance agreement and how those terms could potentially impact your rights going forward.
Our attorneys will help you understand your rights and fight to ensure that your interests are protected throughout the process. Call (404) 865-3771 to schedule a no-obligation consultation.
While it can be tempting to immediately sign the severance agreement, you should always have it reviewed by an attorney first. A severance agreement is a legally binding document (in most cases), therefore if you release liability you will not be able to pursue compensation at a later date.
