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Severance Agreement

Sacramento Severance Agreement Lawyer

Severance Agreements: Good for All or Good for None?

In some cases, a severance agreement may be the best and most practical way for an employment relationship to end. In general, a severance agreement is entered into between an employee and an employer when one or both parties desire to end a contentious or troublesome employment relationship without further hassle or argument. The employer agrees to pay the employee a certain sum of money; in exchange, the employee agrees to release the employer from any further legal claims that the employee may have against the employer.

In one regard, a severance agreement is a win-win for both employer and employee. The business is able to limit its legal liabilities and damages it might owe to the employee, while the employee is able to walk away from what might be an unpleasant or hostile work environment with enough compensation to start afresh. On the other hand, the business is forced to pay a severance amount that might be hard to stomach, while the employee is being asked to forego any future legal claims against the company that he or she might have.

Are severance agreements good ideas for employers or employees? It depends.

Do Not Sign a Severance Agreement in California Without Legal Counsel

Employers typically offer employees severance agreements when a particular employee is seen as being too great of a legal liability to continue employment.

This includes instances when:

  • The employee is accused of committing harassing behavior toward other employees
  • The employee is a victim of harassment and is threatening to sue the employer

You should never sign a severance agreement without reading and fully understanding the document. You should also consider retaining legal counsel to assist you in negotiating and drafting the terms of the agreement and in reviewing the final agreement for accuracy. Once you have signed the severance agreement, the document becomes a binding and enforceable contract that cannot be changed except in very limited circumstances.

I Have Been Offered a Severance Agreement: What Should I Do?

If you have been offered a severance agreement by your employer, it is important that you remain calm and collected. Gather as many details as you can about the proposed offer: how much will be offered to you, what must you give up or do as part of the agreement, how long do you have to decide whether to accept the offer, and what is your employer’s reason for offering a severance agreement, are all valid questions to ask.

Take the information about the severance agreement that you obtained and discuss the matter with an experienced California severance agreement attorney. He or she will be able to process the information you possess and help you better understand whether it is better for you to accept the agreement or whether you would be better off rejecting the agreement and retaining your rights that you would have given up under the agreement.

Proficient & Skilled Severance Agreement Negotiation in California

Sacramento employment law attorney Gay Carroll-Haring of the Law Offices of Gay Carroll-Haring is available to assist you navigate what can be a confusing set of potential paths after you have been offered a settlement agreement. I can help you make sense of your situation and help you decide on a course of action that is best for your situation.

Contact me today by calling 916-443-3553 to schedule an initial consultation.

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