Severance agreements and executive compensation agreements are among some of the most common employment contracts, especially for management level employees. Although severance and executive compensation agreements are common, that does not mean that they aren’t complex contracts with several nuances. Accordingly, it is highly recommended that you consult with an employment lawyer before signing a severance agreement, executive compensation agreement, or other employment contract.
The Libertyville employment law attorney William J. Provenzano routinely represents individuals and businesses in connection with a wide range of employment agreements – including severance agreements, executive compensation agreements, confidentiality agreements, non-compete agreements, and restrictive covenants – for employees at all levels.
Contact our office today at (847) 816-6588 to discuss your employee contract needs.
A severance agreement is a contract that an employee might sign upon termination. Although every severance agreement is different, under most severance agreements, the employer will compensate the employee for a period of time (or as a lump sum) in exchange for the employee agreeing not to sue the employer.
Some severance agreements are relatively short, whereas others will provide compensation and benefits, such as outplacement services and continuation of medical insurance, to the terminated employee for a period of time. Many employers’ severance packages are based on the years of service or job position of the employee at the time of termination.
Because a severance agreement typically contains a release and waiver of claims requiring that the employee forfeit any legal claims against the employer, it is important that you discuss your employment situation and the severance agreement with an employment attorney before signing the agreement.
Executive Compensation Agreements
Some businesses offer high level employees an executive compensation agreement, which spells out the terms of compensation and benefits. In exchange for the agreed upon compensation and benefits, the employee will be asked to make his or her own commitments as well. Accordingly, it is important to consult with an executive compensation lawyer before signing this type of employment contract not just to ensure that the compensation package is appropriate, but also to be clear about all of the terms and conditions of the agreement.
Contact an Employment Contract Lawyer
Severance agreements and executive compensation agreements are relatively common, but that doesn’t mean that they should be taken lightly. They often include complex issues, such as deferred compensation, stock options, tax issues, retirement benefits, health benefits, travel perks, relocation benefits, restrictive covenants, non-solicitation clauses, arbitration provisions, and waivers of certain legal rights. Accordingly, it is important that an employment law attorney review a severance agreement or executive compensation agreement before it is signed.
Libertyville employment contract lawyer William Provenzano focuses on representing clients with a wide range of employment law issues, including employment contracts, discrimination claims, and other employment claims. We routinely represent individuals and businesses in connection with various employment agreements, including severance agreements, executive compensation agreements, confidentiality agreements, non-compete agreements, and restrictive covenants.
Contact our office today at (847) 816-6588 to discuss your case and schedule a consultation with our Lake County employment contract attorney.