Severance Agreements

What should I do if my employer gives me a severance agreement after terminating me?

Severance agreements usually waive your rights to file a lawsuit against your employer. In many situations an employer will purposely offer less money in a severance agreement than is justified in the situation. You should consult an attorney in order to ensure that all your rights are protected and that you obtain a just and fair resolution.

What are some important clauses in severance agreements?

A properly tailored severance agreement can maximize your termination compensation while addressing any concerns you have pertaining to confidentiality. Some of the important clauses are as follows:



  The consideration clause governs the amount of compensation and other benefits you will receive in exchange for waiving your rights to file a lawsuit for most types of employment law disputes. In addition to severance pay, this clause can also include other benefits such as an employer agreeing to pay for continuation of health insurance coverage.  


  In many situations, both the employer and employee want to include a confidentiality clause making the terms of the severance agreement a secret.  


  Terminated employees can alleviate their concerns about receiving negative references by negotiating a positive reference clause. The clause commonly states that if any prospective employer calls, the terminating employer will only state limited information such as dates of employment and position held. In some cases, this clause will also require that the employer provide a positive reference letter for the employee to use in future job applications at other companies. In some agreements, a liquidated damages provision is included requiring the employer to pay a set amount of compensation if it violates the confidentiality clause.  

How can an attorney help you?

You will usually have only a limited period of time after being terminated to negotiate a severance agreement with your employer. An attorney can quickly review the facts surrounding your employment in order to determine your best course of action.

Employers frequently provide an initial severance agreement that greatly underestimates the amount of severance compensation an employee is entitled to. This is especially true in cases where your employment ended with a workplace dispute or where your employer engaged in unlawful conduct such as sexual harassment, discrimination, or failure to pay overtime wages. The amount of compensation your employer may be willing to provide could greatly exceed the amount provided in your initial severance agreement.

We are experienced in negotiating severance agreements so that you maximize your compensation as well as ensure that you do not receive negative references in the future. Remember: no recovery, no fees. In severance negotiations, we work on contingency and only get paid if we negotiate a better severance package than your employer originally offerred.
Socal Employment Counsel - Representing Employees in Workplace Disputes Throughout Southern California
Socal Employment Counsel - Representing Employees in Workplace Disputes Throughout Southern California
We can quickly review your severance agreement and negotiate a better package with your employer. 

Phone: 213.275.2018

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