Severance agreements, or separation agreements, are often entered into by an employer and a departing employee. Keith Clouse, a Dallas attorney who regularly drafts employment contracts and severance agreements, notes that many severance agreements contain similar terms.
First, a severance agreement will likely contain a provision detailing the nature of the separation and noting the employee’s last day of work. Second, the agreement will usually contain a provision regarding payment by the employer to the employee. Payment may be accomplished with a lump sum payment or with monthly payments and may include amounts reflecting payment for accrued sick leave or accrued vacation leave.
Most severance agreements include a release, whereby the employee releases the employer from any and all claims arising out of the employment relationship. This release will prevent the former employee from successfully suing the employer for any claims that fall within the release’s boundaries.
In some instances, a severance agreement will contain a non-compete clause and/or a non-solicitation clause, detailing restrictions upon the former employee’s ability to compete with the employer, hire its employees, or contact its customers. Severance agreements may also contain provisions regarding the treatment of the employer’s confidential information.
To speak with Mr. Clouse or with another attorney at a Dallas employment law firm, please contact the employment law lawyers at Clouse Dunn Khoshbin LLP at email@example.com.