Risks an Employer Takes When It Refuses to Negotiate a Separation Agreement
When navigating the end of an employment relationship, an employer must not take an overly confident stance.
Dallas employment lawyer Keith Clouse represents both executives and employers in employment-related matters, including the dissolution of employer-employee relationships. Mr. Clouse believes that, when navigating the end of an employment relationship, an employer must not take an overly confident stance that fails to acknowledge the risks inherent in refusing to negotiate with a departing executive. These risks include:
- Risk of litigation. Litigation by a top executive can damage a company’s public reputation and require the expenditure of significant funds and personnel time.
- Risk to the employer’s reputation. An unhappy executive who talks about the company to others (including clients, customers, vendors, and the media) can damage the public’s opinion of the company. In some instances, customers, prospective customers, or vendors may decide not to do business with the company because of information leaked in connection with the executive’s termination.
- Risk of competition and loss of confidential information. An executive who is not adequately bound by a non-compete or nondisclosure agreement may compete with the company post-termination and disclose or use the company’s confidential information.
This article is presented by the Dallas employment law lawyers at Clouse Dunn LLP. To speak to an employment law attorney about a separation agreement, send an email to firstname.lastname@example.org or call (214) 239-2705.