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Many employers ask workers to sign severance agreements as part of the employee termination process. These agreements can have significant implications for an employee’s financial stability, future job opportunities, and legal rights, which makes it important that they understand what they’re being asked to sign. Just as a well-negotiated severance agreement can offer much-needed security at a stressful time, a poorly negotiated one may waive important claims or impose unfair restrictions.
If your Sterling Heights employer has offered you severance, turn to an experienced employment law attorney from our law office before signing the agreement. The law firm of Fagan McManus, P.C., can review the agreement and negotiate terms that serve your interests. Contact us today for a free consultation with a Michigan employment lawyer.
A severance agreement is a contract between an employer and a departing employee that outlines the terms of the separation. The employee typically agrees to certain conditions in exchange for severance pay or benefits. While some companies use standard templates, these agreements are not one-size-fits-all, and, in many cases, the terms are negotiable. Some of the provisions commonly found in severance agreements include:
Because signing a severance agreement usually entails giving up the right to sue, it’s important to fully understand what you’re agreeing to before you sign the agreement.
Sterling Heights employers may offer severance agreements in a range of employment termination scenarios. While Michigan law doesn’t require employers to offer severance pay, many companies provide it to reduce their legal risk or as a gesture of goodwill. Employers most commonly offer severance agreements in the following situations:
Sometimes, the offer of severance is tied to an employee’s willingness to waive potential legal claims. Even if the package appears generous, employees should be cautious, especially if the termination was unexpected or involved tension. An employment lawyer serving Sterling Heights can review your severance agreement and clarify whether the offer is fair.
Severance agreements often contain complex legal provisions that can significantly affect your rights after leaving a job. One of the most important issues is the waiver of legal claims. In many cases, employers require employees to give up the right to sue them for wrongful termination, discrimination, harassment, or retaliation. Once an employee signs a waiver, it’s usually enforceable.
Another concern is the presence of non-compete or non-solicitation clauses, which may limit your ability to work in your field or contact former clients and colleagues. Some agreements also include confidentiality and non-disparagement clauses, which restrict what you can say publicly about your former employer.
Additional legal issues may include:
Since even a single overlooked clause can affect your ability to earn a living or protect your legal rights, it’s critical that you fully understand the implications of a severance agreement before signing it. Take time to carefully review the terms – ideally, with a knowledgeable employment law attorney from our law firm present – and understand what you may be giving up. In many cases, Sterling Heights employers ask employees to waive their right to pursue legal claims, even when those claims may be valid. Signing without proper review could cost you leverage you didn’t know you had, as well as cause you to miss out on additional compensation.
You should also assess whether the severance amount is fair based on your length of service, your job title, and the circumstances of your departure. Consider the impact of any non-compete or non-solicitation provisions on your future employment prospects.
Employees over 40 should be aware of their rights under the Older Workers Benefit Protection Act (OWBPA), which generally provides 21 days to consider the agreement and seven days to revoke it after signing.
A severance agreement is a legally binding contract that can affect your career, finances, and legal rights – and it’s written to protect your Sterling Heights employer’s interests. Before you sign, get advice from someone who is solely focused on protecting yours.
Having an employment law attorney review and negotiate the agreement can offer critical protections. They can help:
Fagan McManus, P.C., has over 25 years of experience fighting to safeguard the rights of workers in Sterling Heights and throughout the Detroit metro area. We work solely for employees and focus exclusively on employment law. Our law firm understands the power employers often hold in disputes surrounding employee termination, and we’re committed to helping workers fight back from a stronger position.
If you’re looking for a client-focused attorney who will listen to and address your concerns, you can trust the team at Fagan McManus, P.C., to provide the support you need, devote our resources to your case, and fight to achieve a favorable outcome.
Were you recently terminated from your position in Sterling Heights? If your employer has asked you to sign a severance agreement, make sure you’re doing everything possible to protect your rights and your future. Step one is to reach out to a skilled employment law firm before doing anything else. Contact the team at Fagan McManus, P.C., right away to arrange a free consultation. We look forward to hearing your story, explaining your rights and options, and helping you take the next steps after being presented with a severance agreement.
