Review of Severance and Separation Agreements
Employers are increasingly requiring employees to sign Separation Agreements at the time of discharge or termination of employment. Frequently an employee is offered a financial incentive or compensation such as severance in exchange for signing a Separation Agreement which will ordinarily include a Release of claims or a provision that results in the employee giving up any potential legal claims that the employee may have against the Company.
There are various laws that require that Separation Agreements containing such a Release contain certain information including giving the employee a certain amount of time to review the Agreement, notifying the employee of other individuals being terminated at the same time, notifying the employee of their right to consult with legal counsel and giving the employee a period of time to withdraw or revoke the Agreement even after it has been signed.
Sometimes these Agreements attempt to deprive an employee or withhold certain benefits or compensation that the employee is already entitled to receive whether or not they sign the Agreement. Other times, the Agreement fails to contain the information that is required to be provided to the employee.
If presented with a Separation or Severance Agreement containing a Release, it is important for the employee to consider having an attorney review the Agreement in order to fully understand the effects of signing the Agreement, to evaluate any potential claims that the employee may have arising out of and relating to the termination of their employment and to make sure that their individual rights are fully protected.
To speak with an experienced New Jersey Employment Law Attorney, contact the Law Offices of Gregory S. Schaer, LLC, conveniently located in Monmouth County, New Jersey.