Separation agreements

Once considered appropriate only for top executives, separation agreements are increasingly being used by employers for marketing, technical and professional employees. Separation agreements can include, but are not limited to, noncompetition clauses, severance amounts, a waiver of rights, reason of termination, bonus participation/stock options, medical and COBRA, severance contingencies, separation date, vested benefits, confidentiality, company personal property, retirement planning and placement, relocation expenses and governing law. A well-crafted severance agreement could be beneficial to both the employer and the employee. Rights of confidentiality, noncompetition and protection against litigation should be attractive to most employers. A bridge, both as to pay and benefits, should be the goal of the employee to cushion what may be a very difficult transition.