A separation agreement is a contract between an employer and employee that specifies the terms of how a termination is to be handled when an employee leaves the company. A separation agreement is useful for providing both parties with details of their legal obligations. These types of agreements are used when an employee leaves a company due to being terminated or is laid off or quits. A separation agreement is a way to provide for the temporary financial needs of the employee upon leaving the company.
Provision for Benefits and Payments
A legal separation agreement includes provisions that spell out the details of how payments and benefits are to be handled once an employee leaves the company. The contract provides information for both parties.
- Whether severance pay will be provided
- How severance pay is to be calculated
- How vacation time is to be handled
- What to do about sick days that have been accrued
- How medical coverage will be handled
- How profit sharing and pensions plans will be handled
These provisions detail how the final payments will be made to an employee as part of the agreement. In addition to these issues, the employee will typically agree that once final payment is made you will discharge the company from any further legal action.
There may be additional provisions as part of a separation agreement. These may stipulate such things as how an employee must treat confidential company information and secrets. Sales organizations may require you to turn over client lists. It may also indicate that an employee may not contact company clients for a period of time after leaving or that they may not go to work for a competitor for a length of time.
How an Employment Attorney Will Help
If you are presented with a separation agreement, it is best to have it reviewed by a qualified employment attorney before you sign it. Your attorney will review the entire document and ensure that your interests are protected. A lawyer will make sure that the agreement complies with all of the local, state, and federal laws.
In addition, if there are any terms that need to be negotiated, your lawyer will work to provide the details necessary to make changes to the document. Sometimes an agreement will need to go back and forth more than once before both parties are satisfied with the terms. Keep in mind that you do not have to sign an agreement until you and your attorney agree that it is fair.
If you already have a separation agreement that is in dispute, you need help from a qualified Pennsylvania employment attorney. Some agreements may be vague or may not conform to the law and therefore may not be enforceable. Your attorney will assist you in resolving employer disputes to ensure that your rights are protected.
Before you sign a separation agreement, contact the experienced legal team at HKM Employment Attorneys to find out how we will protect your rights.