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Separation Agreements — Frequently Asked Questions

Who Uses Separation Agreements And Why?

Employers often ask employees to sign separation agreements in exchange for some benefit, such as payment of unused vacation time, severance pay or a good reference to use for pursuit of employment elsewhere. Or an employer may simply ask an employee to sign such a document during an exit interview as a matter of course, with no pledged reward other than goodwill.

What Do Separation Agreements Typically Contain?

Separation agreements often contain language specifying that the employee:

  • Will not bring a wage and hour claim against the employer
  • Will not take trade secrets such as client lists or operational methods and share them with others outside the company
  • Will not sue the employer for age discrimination or any type of discrimination
  • Will return all company equipment upon leaving
  • Will not speak to the media about internal affairs of the company

When Is It Advisable To Consult With A Lawyer Regarding A Separation Agreement?

It is a good idea for an employer to consult with a lawyer and ask for help drafting, updating or personalizing a separation or severance agreement. It is likely a good plan for an employee to ask an attorney to scrutinize a severance agreement to determine whether it is fair and reasonable in scope.

Employee: Will It Be Beneficial To Sign Or Not To Sign?

Employees interested in knowing their rights and opportunities at the time of termination from a company should consult with an employment law attorney. Severance pay may seem attractive but if there is a legitimate lawsuit ahead, an employee may be better off not signing — and reserving the right to bring a claim.

Employer: How Can You Protect Your Company’s Intellectual Property And Market Advantages?

Employers have a great deal invested in trade secrets. Naturally, such employers want to know how to craft and enforce nonsolicitation agreements and noncompete agreements. Brown Law Office has years of experience guiding employers through the process of terminating employees with the least risk.

How Can You Contact A Reliable, Cost-Effective Dallas-Fort Worth Area Employment Law Firm?

Contact us regarding any topic mentioned in this “Separation Agreement FAQ” page or any other employment law topic. Call our law office in Flower Mound at 972-355-0092 or email us through this website for a prompt response. Request a consultation with Texas employment lawyer Betty L. Brown regarding a pending separation agreement.