Being let go from a job can be a stressful experience, especially when you're presented with a severance agreement that includes legal terms and conditions. If you’ve been offered a severance package in Fairfield Township, it’s important to understand what you’re signing before agreeing to it. A severance agreement may affect your rights to pursue legal claims, collect unemployment, or seek future employment, so reviewing it carefully—and consulting with an attorney—is essential.
What Is a Severance Agreement?
A severance agreement is a contract between an employer and an employee that outlines the terms of the employee’s departure. These agreements typically include compensation, continuation of benefits, and confidentiality or non-disparagement clauses. In exchange, the employee often agrees not to sue the employer or pursue legal action for wrongful termination or discrimination.
Key Components of Severance Agreements
Severance agreements can vary, but they usually contain the following elements:
- Severance pay: A lump sum or continued salary for a specified period
- Benefits continuation: Extended health insurance or other benefits
- Non-disparagement clauses: Provisions that prevent either party from speaking negatively about the other
- Waiver of claims: An agreement by the employee not to pursue legal action against the employer
- Noncompete and confidentiality clauses: Restrictions on sharing company information or working for competitors
Should You Sign a Severance Agreement?
While a severance package may seem generous, it’s important to assess what rights you may be giving up. Signing a severance agreement may mean:
- Waiving your right to sue for discrimination, harassment, or wrongful termination
- Agreeing not to work for certain employers in the future
- Giving up unemployment benefits, depending on the terms
Before signing, you should always consult with a qualified employment attorney who can review the document, explain your rights, and help you negotiate better terms if necessary.
Legal Protections and Review Period
Employees are often entitled to a reasonable period of time to review severance agreements. For instance:
- Employees over age 40 must be given at least 21 days to review under the Older Workers Benefit Protection Act (OWBPA), and 7 days to revoke after signing.
- Employers cannot coerce employees into signing under duress or without adequate time to consider the agreement.
Legal Support for Fairfield Township Employees
Protecting Your Rights when reviewing or negotiating a severance agreement is essential. Castronovo & McKinney, LLC has extensive experience advising employees in Fairfield Township on severance matters. Their legal team will ensure that your rights are not waived unfairly and that you receive the compensation and protections you deserve.
Contact Castronovo & McKinney Today
If you’ve been presented with a severance agreement, don’t sign until you’ve reviewed it with a qualified attorney. Contact Castronovo & McKinney today to schedule a consultation and ensure your rights are protected.
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Phone: 646.755.3781
Fax: 646.755.3781