Severance Packages

Employees should usually have proposed severance packages reviewed by an experienced and knowledgeable employment attorney.  Employees may be waiving claims they are not aware they are waiving, and more importantly, are not required to waive.  In certain instances, a proper evaluation of the circumstances surrounding a former employee’s termination or separation will reveal that it may be more appropriate to pursue legal recourse instead of waiving potential claims.

Severance packages are being offered by employers more and more these days.  Employer’s generally offer severance packages for many reasons, including to prevent litigation, to prevent adverse publicity, to prevent employees from diverting present clients, general company policies of fairness, or because a company is obligated to pursuant to company documents or a handbook.  Not only might an employee be waiving rights he or she should be entitled to maintain, but an employee may be acquiring new and unfair obligations as a result of signing a severance agreement.

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