Employment & Severance Agreement Review

Many employees sign employment agreements upon hiring. Employment agreements are contracts that outline duties, expectations, salary, benefits, duration of employment, reasons why an employee might be terminated, and numerous other factors, including non-compete clauses and confidentiality terms. Similarly, employers often ask employees to sign severance agreements before they leave employment with the company. Generally, the employer offers a payment of severance in exchange for confidentiality and the employee’s promise not to bring legal action against the employer. Although they are regularly included in contracts and severance agreements, clauses with non-compete and confidentiality language may be unenforceable. Employers should consult with an attorney when preparing employment agreements to ensure that the terms remain viable. And employees should consider consulting with an attorney prior to signing any such agreement to identify enforceability issues and language that could place them at a disadvantage.

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Frequently Asked

Questions

An employment contract lays out the terms of an individual’s employment in writing.

Not all employers provide contracts for their workers. Without a contract, an at-will employment relationship exists in New York (and in most U.S. states), which means that the worker can be fired at any time, for any reason or no reason at all, so long as the termination is not in violation of any discrimination laws. However, when there is a contractual employment relationship, the worker’s right to continued employment is governed by the terms of the employment contract. If the worker is terminated in violation of the contract, the worker may take legal action against the employer for breach of contract.

No. Employers are not obligated to provide severance pay unless the employee signed a contract requiring some form of payment.

It is advisable to review the contract with an attorney if you have any doubts or hesitations about the terms. For help negotiating, drafting or reviewing the terms of your employment contract, or any related agreement, please contact the attorneys at Frontera Law.