Home Q&A Forum Severance agreement and reduction in force?

Employee Rights

Severance Agreement

Texas

Asked on Jun 20, 2023

Severance agreement and reduction in force?

I recently received a severance agreement from my employer that included a reduction in force. I am unsure of the implications of this, as I am not sure if I am still entitled to benefits or other compensations associated with my former employment. I would like to better understand my rights and responsibilities under the agreement.

Answers from 1 Lawyer

Answer

Employee Rights

Texas

Answered 992 days ago

Mark D.

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Licensed in Colorado, Texas
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March 15, 2022

I am happy to review and discuss the severance agreement with you. On average, the cost associated with a review can be anywhere from $525+ depending on the complexity of the issue.

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Can a severance agreement be enforced if I feel pressured to sign it due to a short timeframe and lack of legal counsel?

I recently lost my job and was presented with a severance agreement by my employer. However, I feel pressured to sign it because the company has given me a short timeframe to review and accept the agreement, and I do not have access to legal counsel to help me understand the terms and potential implications. I am concerned that if I sign the agreement without fully understanding it, I may be waiving important rights or benefits that I am entitled to. Can a severance agreement be enforced under these circumstances?

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Answered Dec 27, 2024

My answer depends on many factors. First, if you are an "at will" employee (no employment contract), the employer can fire you for zero reason and with zero notice, and you have no rights unless you can prove that the employer is violating state or federal law (such as firing you for illegal discriminatory reasons, for submitting a safety complaint, or something similar). If you do have an employment contract, or possibly if you are 40 or older, you have the right to be given 21 days to review a severance proposal. I suggest that you submit a proposal here on Contracts Counsel, with a short turnaround, and ask an employment attorney to review the proposal and your employment situation with you. I generally engage in this sort of review myself, but, unfortunately, am not available until the end of January. Another option is to find an attorney through this national employee's attorney organization: NELA.org In either case, prepare yourself to pay $300 - $500 for a thorough review and discussion. Good luck to you.

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There are two main types of Severance Agreements. One is signed at the beginning of an employment relationship and the other is signed at the end. When a Severance Agreement is signed at the beginning of an employment relationship, "severance" is what the employer promises to pay (above and beyond the employee's regular wages) when employment terminates i.e. when the parties "sever" ties. The sum of severance pay is typically calculated by how long the employee had been employed by the company at the time of separation. Before signing this type of Severance Agreement, a prospective employee should be sure that it clearly defines all the important terms and conditions. For example, the Severance Agreement may address how long the employee must be employed to become eligible for severance pay, how long after termination the severance pay will be paid, whether severance pay will be paid in a lump sum, and what could cause the employee to forfeit severance pay.

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In most cases, a severance agreement will have a confidentiality provision included. However, even if there is a confidentiality agreement, there are some instances where that confidentiality may be broken. For instance, in the case of a court order requesting the release of information or a government agency, such as the IRS or the state taxing or unemployment office, an employer may have to release information. There are also laws that prohibit the release of certain private information. In your case, it sounds as if your employer didn't include a confidentiality provision in the severance agreement, and for contracts, the general rule is that if a provision isn't included in the contract, it's not included in the contract. That being said, you may want to contact the employer and ask what the employer's policy is regarding the release of information to potential employers that you may be seeking to work with. There are also two laws that you may want to consider speaking to a NC-licensed attorney about. They are the following: 1.§ 1-539.12. Immunity from civil liability for employers disclosing information. "(a) An employer who discloses information about a current or former employee's job history or job performance to a prospective employer of the current or former employee upon request of the prospective employer or upon request of the current or former employee is immune from civil liability and is not liable in civil damages for the disclosure or any consequences of the disclosure." 2. § 14-355. Blacklisting employees. "If any person, agent, company or corporation, after having discharged any employee from his or its service, shall prevent or attempt to prevent, by word or writing of any kind, such discharged employee from obtaining employment with any other person, company or corporation, such person, agent or corporation shall be guilty of a Class 3 misdemeanor and shall be punished by a fine not exceeding five hundred dollars ($500.00); and such person, agent, company or corporation shall be liable in penal damages to such discharged person, to be recovered by civil action. " You can find more detailed information here: Source - https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/job-reference-and-0 You can also learn more about me here: www.sheliahugginslaw.com www.facebook.com/sheliahugginslaw www.instagram.com/mslegalista www.youtube.com/mslegalista

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