Through their course of employment at different jobs, employees will likely come across a severance agreement. It is important to look at these agreements carefully, and reach out to an attorney if you have questions or believe the agreement is unjust. Our skilled Chesterfield County employment agreement attorney can help. Give us a call today to get started.
What is the purpose of a severance package in Virginia?
In the state of Virginia, a severance agreement is a legal contract between an employer and an employee that is used to define the terms of the employee’s separation from employment. These agreements are typically proposed in resignations, layoffs, retirement, or terminations.
Severance agreements generally provide an employee compensation after ending their employment or in preparation for the ending of their employment. The employer typically provides payment to the employee so that the employee can have a monetary cushion while searching for new employment.
In order for a severance agreement to be valid, the agreement must provide a benefit to the employee (known as consideration) such as a specific financial sum in exchange for a waiver of rights. The waiver of claims is frequently known as a general release and is standard in most severance agreements.
In most circumstances, employees are usually supplied with time to view the severance agreement before they sign it. Employees over the age of 40 must be offered a 21-day consideration period under The Older Workers Benefit Protection Act.
What should I keep in mind when negotiating a severance agreement?
There are a number of factors you will want to keep in mind when signing a severance agreement. You should consider the following:
- The consequences of violating the agreement
- Which claims are waived
- The financial terms or severance payments
- The timing of severance payments
- Confidentiality terms
- Re-hiring opportunities
- Tax consequences
- Reference letters
- Any claims you may have against the company will be waived
In the event that you are negotiating a severance agreement, you will likely profit from having an experienced attorney on your side. With the help of an attorney, you can better understand the facts of the agreement and what rights you may be waiving. If you would like assistance with your severance agreement, our firm can help. Give us a call today to get started.
CONTACT OUR VIRGINIA EMPLOYMENT ATTORNEY
At Passero Employment Law, we understand it is difficult to confront problems in the workplace or face litigation. With that in mind, we take a solutions-oriented approach to our representation – focusing on the right process and the right solution for each of our clients. If you need help with an employment law matter in the state of Virginia, you can count on Passero Employment Law to effectively represent your interests. If you would like to discuss your matter, please contact Passero Employment Law today.