Whether you are an employee or employer, negotiating and accepting severance agreements in Virginia can be a complex matter. This is not a gift or a simple payout. A severance package is a deal, and it needs to be treated as one. We highly recommend having an attorney help you draft and review any severance agreements.
Understanding Severance Agreements
At its core, a severance agreement is a deal. And a simple one at that. The former employee receives compensation, and the former employer receives various protections. Usually, employers seek a general release of claims, sometimes they ask for confidentiality. They may also request that you avoid speaking negatively of the company once you have been terminated.
Basically, you have things that your employer wants when you are terminated. So, you need to negotiate what you are wiling to sell and settle on an appropriate sale price.
What is the best way to negotiate a severance package?
When you are leaving a company, you may be asked to sign a severance package. This typically contains detailed, complicated legal language. It talks about future compensation and rights to take legal action against the employer. This agreement should also state that you have been informed that you should seek the advice of an attorney before signing the agreement. We highly recommend that you do this.
Do I need an attorney for a severance agreement?
You should always seek legal guidance before signing any agreement, severance packages are no different. At Cook, Craig, Francuzenko, our attorneys are experienced at reviewing, editing, and negotiating severance agreements with employers. We provide brief reviews and flag potential concerns, or we can do an in-depth representation where our attorneys draft, propose, and negotiate directly with your company. Here are some reasons hiring an attorney for negotiating and accepting severance agreements is a good idea:
General Release: Employers often ask for a “General Release” which releases the employers from all possible claims. Before signing one, make sure you do not have outstanding legal rights that you would be giving up. We can help you review that.
Confidentiality Clause: Another issue is that employers frequently want a confidentiality clause. You need to consider how this affects your future job hunt. You also need to make sure you don’t violate this if you sign.
Non-Disparagement Clause: Lastly, employers often ask for a clause that guarantees that you will not speak poorly of them when you leave. Is that something you are prepared to do? If so, what is a fair price for that promise?
[Related: ChatGPT Employment Contracts]
How long does an employee have to review a severance agreement in Virginia?
Most people think that severance plans need to be negotiated during a separation from employment. Ideally, negotiation would take place before you begin your employment. But the reality is they are usually negotiated after you are told you are being terminated.
Truthfully, the most beneficial severance packages are negotiated when no one expects that employment will end anytime soon. Usually only high-level executives are given this opportunity.
When it comes to reviewing a severance package that your employer has presented, you typically have 21 days to consider it and respond.
Do severance agreements hold up in court?
Yes, they do. A severance agreement is a legal document and when you sign it, you are agreeing to everything inside the agreement. This is why we cannot stress enough the importance of having an attorney aid you in your negotiations.
Lawyer for Negotiating and Accepting Severance Agreements in Virginia
Whether or not you are planning to leave your employment, you should consider allowing our attorneys to help you draft and negotiate a severance package. Make sure you are protected and get what you deserve. Contact Cook, Craig, and Francuzenko today to learn more.
