Severance Agreements
Severance agreements provide compensation and benefits to employees upon termination, but often include significant restrictions and waivers of legal rights.
Common Provisions:
- Severance pay and continued benefits
- Release of legal claims
- Non-disclosure and non-disparagement clauses
- Non-compete and non-solicitation restrictions
- Return of company property
Legal Requirements:
- OWBPA requirements for age discrimination waivers
- 21-day consideration period (7 days for group terminations)
- 7-day revocation period
- Clear and understandable language
Employees should carefully review severance agreements before signing, as they typically waive important legal rights.