Leaving a company is never easy, especially if leaving is not your choice. If you are leaving a company and your employer offers you a severance agreement, there are a few things you should consider before signing on the dotted line.
The Pros of a Severance Agreement
When it comes to leaving a company and you have the option to accept a severance agreement, there are some benefits to consider.
- Clean slate: If you are let go under controversial circumstances, having a severance agreement means that neither you nor your employer can file a lawsuit against the other party. Having an agreement in place provides clarity for all parties involved.
- Reputation: You can rest assured knowing that your previous employer cannot provide negative feedback about your work performance to a new employer if you have a severance agreement.
- Financial incentive: Whether you are looking for a fresh start or want to get away from your previous company, most severance agreements come with a cash offer. This offer is in addition to any agreements agreed upon by both parties. The cash offer may also be enough to support you until you are able to find another job.
The Cons of a Severance Agreement
While there are some pros to a severance agreement, there are also cons.
- Negotiations: While many severance agreements come with a cash incentive, not all do. This can cause stress for both parties by requiring additional negotiations.
- Foreseeing the future: If you notice that your company is offering several severance agreements to coworkers who work in the same department or in a similar role as you, the writing could be on the wall for your career. It’s best to think ahead and consider the pros and cons of accepting a severance agreement before you’re confronted by your employer.
If you think that your former employer isn’t honoring your severance agreement, you need an experienced employment attorney on your side. At Pearson Butler, we have helped countless workers in their time of need. Call our offices today to learn how we can help you - (800) 265-2314