A severance package is one of the many documents you may encounter in your employment career. To learn more about what they entail, continue reading and reach out to a skilled and dedicated Chesterfield County severance agreements attorney today.
What is a severance package in Virginia?
A severance agreement is a legal contract that is completed between an employer and an employee. This contract summarizes the terms of what will happen in the event of a separation from employment. These agreements are generally presented in resignations, layoffs, retirement, or terminations.
Severance agreements typically provide an employee compensation after ending their employment or in preparation for termination of their employment. This compensation is utilized so that the employee can have a monetary fallback while they look for a new job.
In order for a severance agreement to be accurate, it must supply something of significance (known as consideration) to the employee like a specific financial sum in exchange for a waiver of rights. The waiver of claims is oftentimes known as a general release.
In most cases, employees are normally supplied with time to view the severance agreement before they sign it. Employees over the age of 40 are given a 21 day consideration period under The Older Workers Benefit Protection Act. You will want to note that you should never rush into signing this agreement as the terms of the agreement may be negotiable.
What factors should I think about when negotiating a severance package?
It is important that you consider a number of different factors when signing a severance agreement. You should think about the following:
- The financial terms or severance payments
- The timing of severance payments
- Confidentiality terms
- The consequences of violating the agreement
- Which claims are waived
- Tax consequences
- Reference letters
- Re-hiring opportunities
- What will happen to employment benefits
In the event that you are negotiating a severance agreement, you will likely benefit from having an experienced attorney on your side. With the help of an attorney, you can better understand the details of the agreement and what rights it is waiving. If you are interested in obtaining assistance with your severance agreement, look no further than our firm. 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.