A severance agreement is a legal document that defines the terms of separation between an employer and an employee. A typical severance agreement outlines the terms of compensation, benefits, and stipulations for the distribution of funds and for legal protections against future lawsuits. When done correctly, a severance agreement benefits both the employer and employee, but when done incorrectly, costly and time-consuming legal battles can ensue.
Employers need to be very careful when drafting severance agreements. The language of the contract and the stipulations outlined in the agreement can have a significant effect on the successful separation between an employer and employee. Employers that ensure their employees fully understand the conditions of the severance agreement can avoid future legal problems. A successful severance agreement will consider the following:
Employers are wise to consult with an experienced employment lawyer when drafting or revising a current severance agreement. A qualified employment lawyer can review the terms of your agreement and advise you of what future impact your severance agreement can have on your company. The legal jargon used in the severance agreement needs to be strong to hold up in court if it is challenged.
A sound severance agreement will clearly outline the terms of the agreement, the distribution of compensation and benefits offered in the agreement, and protect your company from costly and time-consuming lawsuits. Employers that continuously review and update their severance agreements have the best success with employee terminations. Legal counsel can ensure that your legal rights are protected now and in the future.
The West Chester employment lawyers at MacMain Leinhauser can help your business establish severance agreements that provide legal protection from lawsuits filed from terminated employees. Call us at 484-318-7106 or contact us online to schedule a consultation today. Our West Chester, Pennsylvania offices serve clients in Philadelphia, Chester County, and throughout the state of Pennsylvania.