Encino Severance Packages and Separation Agreement Attorneys
There comes a time when one or more of your employees will cut ties with your company. Sometimes, they will leave on amicable terms, and, in other situations, the end of the employment relationship might not be so positive. It is important to plan ahead and consider what you might offer employees you let go, and what you might expect from them in the time following their employment.
Though they are often associated together, severance packages and separation agreements (also known as severance agreements) are different considerations. If your company is thinking about offering severance benefits or having expectations of former employees. Discuss this matter with your Encino severance package and separation agreement lawyer at Kaufman McAndrew LLP today.
There is no law that requires companies to offer severance pay or benefits above and beyond the employee’s regular pay. However, many employers realize that severance packages are a way to show appreciation for the employee’s work, prevent legal claims by the employee, and generally leave the relationship on good terms.
Some components of a severance package might include:
- Monetary compensation - This could be a regular payment for weeks or a lump sum that is based on the employee’s prior salary.
- Extended benefits coverage - Companies might offer to continue to cover health benefits (such as COBRA), life insurance, or disability coverage for a certain period of time following employment.
- Unemployment benefits - Employers might agree that they will not contest a claim for unemployment benefits by the employee.
- Job placement services - A company might provide services that help the employee transition into a new job and company, including career coaching.
- Miscellaneous benefits - Packages can be tailored to provide benefits specific to the employee’s situation, such as discounts for company products and services, allowing them to keep a laptop or other company equipment, and more.
It is important to have an attorney review any severance packages you are offering. It is also critical to follow through with all promised benefits and terms of the severance package.
Like severance packages, it is never mandatory to enter into a separation agreement with an employee, though doing so can protect your company in different ways. Unlike a severance package, a separation agreement focuses on the former employee’s obligations, not the company’s. Some terms of this agreement might include:
- The employee gives up the right to file a legal claim against the employer
- The employee will not directly compete with your company for a specific time and within a specific area
- The employee will not disclose any proprietary or confidential information regarding the company
- The employee will not disparage or discredit the company
- The employee will not solicit any customers or employees of the company for their new enterprise or position
Contact an Experienced Encino Severance Package and Separation Agreement Lawyer
The law firm of Kaufman McAndrew LLP understands the many challenges employers can face when relationships with employees end. We are ready to listen to your situation, questions, and concerns, and then provide advice and counsel on how to best proceed. We can review severance packages and draft separation agreements for companies of all types and sizes. Please call 818-788-5767 or contact us online today to learn more about our services.