Severance agreements are an important document for any kind of business that employs workers. Severance agreements outline the conditions involved in the termination of an employee/employer relationship.
Solmer Law can work with your company to draft, modify, or review your severance agreements and make sure that they are in compliance with the law. Our experienced Orange County business counsel attorney is thorough, detail-oriented, and ready to walk you through the process.
Benefits of a Severance Agreement
A severance agreement offers a level of legal protection to the employer when an employee leaves the company after being let go.
Any severance agreement should include:
- The date of termination
- Conditions of termination
- Procedure for returning company property post-termination
- Severance payments
- Waiver of liability
Sometimes, terminated employees feel bitter or disgruntled and attempt to bring claims of discrimination or wrongful termination against the company. A severance agreement provides the opportunity to have terminated employees agree not to bring these kinds of claims against your business. If the employee signed a thoughtful and comprehensive severance agreement, he or she will experience far more difficulty retaliating against you.
Typically, employers offer monetary compensation or other benefits as part of a severance package so that the employee will sign a release of liability waiver that prohibits them from bringing a lawsuit against the company. It's important to make sure that the severance agreement you offer to terminated employees is drafted correctly and that both parties understand the legal implications of the agreement before it is signed.
Work with Solmer Law
Our firm is here to help you draft cohesive severance agreements that protect your business from a wide range of liabilities. We take the time to ensure that your needs, concerns, and goals are addressed and reflected in the agreement.