By: AK Infinite
When it comes to understanding employment contracts and severance agreements, it’s easy to feel overwhelmed by the legal jargon. These documents are more than just paperwork—they define the terms of your job and can have a big impact when it’s time to part ways with an employer.
Employment Contracts: A Foundation for the Employment Relationship
At the start of professional roles, employees typically sign an employment contract. This contract details the responsibilities of both the employer and the employee, including job duties, compensation, benefits, and terms regarding confidentiality, non-compete clauses, or intellectual property.
The contract is legally binding and sets the terms of employment. It may contain non-compete or non-disclosure agreements intended to protect a company’s interests. These clauses could affect an employee’s future career opportunities, making it important for employees to review and fully understand these terms.
It’s not uncommon for employees to feel pressured to sign employment contracts without fully understanding their long-term implications. Daniel Kalish and his team at HKM Employment Attorneys LLP recommend that employees seek legal advice before signing, especially when dealing with high-stakes clauses such as non-competes or arbitration agreements, which can limit an employee’s recourse in the event of a dispute.
Daniel Kalish, Managing Partner at HKM Employment Attorneys LLP, is a seasoned expert in employment law with years of experience representing individuals in employment disputes.
The Importance of Severance Agreements
Severance agreements occur when an employment relationship ends, typically offering compensation in exchange for waiving certain rights. They can provide financial security during a career transition, but it’s essential that employees fully understand the terms before accepting an offer.
“Employers may offer a severance package to ensure a smooth departure, but employees must be cautious about what they are agreeing to,” Kalish explains. A severance agreement often includes a release of claims, meaning the employee waives their right to pursue legal action against the company in the future. This is why it’s critical to ensure that the compensation offered is fair and commensurate with the rights being waived.
HKM Employment Attorneys LLP HKM Employment Attorneys LLP has experience with numerous severance agreement cases, aiming to help employees negotiate fair compensation and maintain their rights in key areas such as unemployment benefits and COBRA health insurance coverage. “Too often, employees focus on the dollar amount offered in a severance package and overlook the broader impact on their future employment options and legal rights,” says Kalish.
When Should You Seek Legal Counsel?
Kalish highlights the importance of being proactive when faced with employment contract or severance agreement negotiations. “You shouldn’t wait until you’re in a difficult situation to seek legal counsel,” Kalish says. “Employees have rights, but those rights can be waived or limited if you’re not careful. It’s crucial to have someone on your side who understands the nuances of employment law and can advocate for you.“
Navigating employment contracts and severance agreements without legal expertise can be risky. Kalish encourages employees to seek professional legal counsel when they are:
- Signing a new employment contract – To understand the full implications of any restrictive covenants (such as non-compete or non-solicitation clauses), confidentiality agreements, or dispute resolution mechanisms like mandatory arbitration.
- Negotiating a severance package – To ensure the compensation is fair and that they aren’t waiving essential rights.
- Facing termination or layoffs – To evaluate whether a severance agreement or any potential claims for wrongful termination or discrimination should be pursued.
For employees concerned about the cost of hiring an attorney, Kalish notes that many employment law firms, including HKM, offer initial consultations at no cost. “Our goal is to ensure that every employee has the opportunity to understand their rights and options before making any significant decisions,” he explains.
HKM Employment Attorneys LLP, with its national presence and dedicated focus on employee advocacy, is a leading resource for those seeking expert legal counsel. You may get in touch with them here.
Disclaimer: “The content in this article is provided for general knowledge. It does not constitute legal advice, and readers should seek advice from qualified legal professionals regarding particular cases or situations.”
Published By: Aize Perez
