In many situations, when an employer terminates an employee, the employee is simply expected to clean out their desk and leave. However, in other scenarios, the company may want the employee to sign something called a separation agreement, which is often the case with higher-level managers or executives. While this agreement can have many terms that can have a significant effect on the former employee’s future, too many individuals simply sign the agreement without fully understanding its implications.
If you are asked to sign a separation agreement upon your termination in or around Las Vegas, you should not hesitate to wait to sign the agreement until you have consulted with HKM Employment Attorneys. Our lawyers regularly review and negotiate separation agreements, so please contact us as soon as possible if such an agreement has been requested in your case.
Video – Employment Lawyer Explains Separation Agreements
Common Terms in Separation Agreements
Separation agreements can have many specific terms but the overall function is to establish the terms on which the employment relationship will end. These terms can vary from case to case though can often affect a person’s professional or financial future. Some common terms that may be included in your separation agreement can include the following:
- Date of the separation with the official stated reason by the company (note, this may be a pretextual reason to cover up discrimination or retaliation);
- Non-disclosure provisions to ensure that the employee does not share confidential information including client lists or trade secrets;
- Non-disparagement clauses prohibiting an employee from saying certain things about the company or the situation surrounding the termination;
- Non-compete provisions that limit an employee’s ability to go work for a competitor or similar company for a certain period of time;
- Severance packages that provide for certain benefits or a monetary payout following the termination, which are completely optional under Nevada law and often contain troubling caveats that an employee may not notice.
Why It Is Important For An Attorney To Review Your Agreement
Like any contract, a separation agreement is a legally binding agreement and once you sign one, it can be difficult to render the agreement ineffective unless certain terms are unenforceable by law. For this reason, you should always have a knowledgeable employment contracts attorney review a separation agreement for any potentially detrimental terms or opportunities for negotiation.
For example, an employee may not realize how significantly a non-compete agreement will affect their job prospects in the near future or that a severance agreement will waive their rights to file a claim for discrimination or wrongful termination. If an employer wants an employee to agree to such terms, it may be leverage to negotiate a severance payout, extension of benefits, or other important terms that can improve their financial future while they find new employment.
Find Out How Our Nevada Separation Agreement Lawyers Can Help You
If you have been asked to sign a separation agreement upon your termination, your first call should be to HKM Employment Attorneys. We protect the rights of employees in and around Las Vegas, so please call a Nevada employment lawyer today to discuss your case.