A severance agreement is an important document that an employer executes with an employee in the event of separation or termination of employment. These agreements are legally binding contracts with vital provisions, including the terms of the separation and any compensation or benefits the employee will receive upon their departure. Disputes may arise if a severance agreement is not drafted properly, and the separating employee is also not legally obligated to accept an offer of severance benefits.
A San Antonio severance agreement lawyer could help draft a detailed, considerate agreement while spearheading negotiations to avoid confrontational or adverse consequences. A well-practiced contracts attorney could guide you through employee separation or termination proceedings while offering skilled advocacy in disputed situations.
A severance agreement outlines the rights and responsibilities of both the employer and the employee upon the end of the worker’s employment with the company. Managing the separation or termination process can be an unpleasant but essential role of running a business. However, there are ways to ensure that when an employee signs a severance agreement, both parties can benefit.
Texas employers are not legally obligated to provide departing employees with severance pay, so the execution of a severance agreement is typically at the company’s discretion. Employers commonly use a severance agreement in instances of:
A severance agreement typically provides an employee payment in exchange for waiving the right to pursue a legal claim against the company in the future. There may be instances where a Texas employer is legally bound to provide severance pay to a departing employee. For example, if the employer previously executed a written contract promising a severance package, the company must honor that agreement.
A San Antonio lawyer understands the complexities of executing a severance package that safeguards your business interests without risking legal action or employee rights violations. Sasha Begum has an extensive background in both international and domestic business law and previously worked as an in-house counsel. The legal team at Begum Pelaez-Prada Business Law could evaluate your business needs, draft the terms, negotiate the agreement, and ensure enforceability and legal compliance.
A San Antonio severance agreement attorney could create a severance agreement that addresses all points of issue with respect to a departing employee, such as:
Compensation is a core aspect of a severance agreement. The document should outline all forms of payment the departing employee will receive, such as bonuses, salary continuation, and stock or equity rights. In addition, the severance agreement should detail the method of payment, such as in a lump payment or multiple payments.
A severance agreement will often provide for a continuation of benefits, such as healthcare coverage featured under the Consolidated Omnibus Reconciliation Act (COBRA).
There are some legal claims an employer may not legally require an employee to waive. However, there are common provisions that are essential to include in an agreement, such as:
For example, if a departing employee is older than 40, the severance agreement should require that they release all potential age discrimination claims. The document should also outline the final date of employment and requirements to return company property, if applicable.
Employees must be given sufficient time to review the terms of the severance package or revoke the agreement. In Texas, employees must be provided 21 days in total to review the agreement after receiving it and seven days to revoke the agreement after signing it.
Employment separation can be a challenging time for both businesses and employees. A severance agreement can ease the transition by providing benefits, alleviating uncertainty, and eliminating ambiguity for both parties about the next steps.
A knowledgeable San Antonio severance agreement lawyer could ensure the final document best serves the unique set of circumstances and does not risk future claims. Sasha Begum and the legal team at Begum Pelaez-Prada Business Law could tailor a severance agreement to the particular needs of the client while reducing stress in reaching the final negotiated severance package. Contact our office to schedule a consultation today.
