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Home Q&A Forum Employee separation agreement and consulting arrangements?

Employment

Employee Separation Agreement

North Carolina

Asked on Jun 29, 2023

Employee separation agreement and consulting arrangements?

I am an employer who is looking to separate from an employee. I am interested in exploring the possibility of providing a consulting arrangement as part of the separation agreement. I am interested in understanding the legal implications of such an arrangement, as well as any potential liabilities or obligations that may arise from such an agreement.

1 Attorney answer

Answer

Employment

North Carolina

Answered 346 days ago

Shelia H.

ContractsCounsel verified

Business Lawyer
Licensed in North Carolina
Free Consultation

While it may seem convenient to offer a consulting arrangement as part of the separation agreement, it is usually better to have the separation agreement completely detached from the consulting agreement. The separation agreement should focus on issues pertaining to the former employment, including pay, confidentiality of trade secrets, return of employer property, etc. The new consulting agreement should look forward, establishing the expectations between the party. If the separation and consulting agreements are in one agreement, there is an increased likelihood of confusion between the old job and the new job.

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