Providing Legal Reviews of Employment Severance Contracts
Terminating an employee can even result in a lawsuit. Perhaps an employee is stirring up a lot of trouble in the workplace or he or she is impossible to manage. Employers must have good reason for concern to fire an employee. When an employer is faced with a lawsuit, the judge or jury can support your decisions and dismiss the charges against you if you have a good reason for concern.
Severance agreements, also referred to as separation, release or termination agreements, are legally binding contracts/agreements entered into by an employee and employer that outline the terms of an employment termination. A severance agreement is a contract between an employer and employee documenting the rights and responsibilities of both parties in the event of job termination.
It specifies any severance package of pay and benefits under certain circumstances in which it will be provided or withheld. Since the state of Illinois has specific requirements about what language must go into a release, you should consult an attorney for help in crafting a legal agreement that will meet your needs. Keep in mind the following general considerations:
– The amount of any severance pay in lieu of contracted notice period
– Extended benefits, such as healthcare or insurance, and the length of time they will be need to be provided
– A non-compete clause forbidding the employee to work for a competitor within a specified time period
– An agreement that prevents filing of wrongful dismissal lawsuits
Severance agreements are sometimes offered as part of a job contract. More often, they are offered as part of job termination, for example in the case of layoffs. Contact The Roth Law Group at 312-419-9599 to talk with our knowledgeable business law attorneys concerning your legal needs.