Severance packages are often included in employment contracts as conditions of termination. A severance package may define any benefits upon leaving the company, how the employee’s final wages will be handled, and stipulations about working for another company in the same field. Sometimes, severance pay is offered in exchange for the employee’s agreement to not go off and work for a competitor – an agreement that is upheld by a legally binding non compete agreement.
Your Severance Package May Not be in Your Best Interest
It is important to give any severance package a great deal of thought before signing, as it could severely limit your ability to work in the future when you leave that employer. In cases where the employee has a highly specialized job and would be sacrificing a large amount of money in terms of lost wages by agreeing to a non compete agreement, the severance package should ideally include a handsome amount of severance pay to help make up for the loss.
Is My Severance Pay Enough to Hold Over Until I am Allowed to Work in My Field Again?
Severance pay is part of some severance packages and is a specified amount of money that your employer is obligated to provide to you when you leave your job, usually as compensation for your temporary ineligibility to work in your field due to a non compete agreement. There is typically bargaining room when determining a fair severance payment, which an attorney can help you reach. As an example of the many things to consider, your severance pay will be used to deduct unemployment benefits, meaning that you will receive fewer unemployment benefits the higher your severance pay is, according to the Pennsylvania Department of Labor and Industry. While there is no Pennsylvania law that requires an employer to offer severance pay, the law does enforce payment when an agreement has been made, according to the Pennsylvania Department of Labor and Industry.
What Makes Up a Severance Agreement
Every severance agreement is different, depending on the needs of the employer, but many of the following aspects are often included:
- Termination Provision
- Severance Payment
- Full Release
- COBRA Information
- Confidentiality Agreement
- Non-Competition Agreement
- Non-Solicitation Agreement
- Non-Disparagement Agreement
Our Pennsylvania Severance Review Attorneys can Help Solidify Your Successful Future
Not all severance packages are fair to the employee, which is why talking over your options with a severance review attorney is the best practice. Moreover, severance packages are typically laden with complicated legal jargon, none of which can be understood by the average, or even highly skilled or educated, worker who does not have the necessary legal experience. We understand that you are excited to accept this great job offer, but do not jeopardize your future by signing an agreement that could end up harming you with unreasonable restrictions. Here at HKM Employment Attorneys, we have over 40 years of experience representing employees and can help you negotiate with your employer to reach a mutually beneficial severance package decision. Contact us today to schedule a consultation.