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. Call the business attorneys at the Roth Law Group at 312-419-9599 for skilled assistance with your severance agreement.