A Severance Agreement is usually drafted in the company’s favor. The agreements and releases in it are not typically for the benefit of both sides. What are some of the mistakes employees often make when handed an agreement? Here are the top ten severance don’ts:
1. Do not sign an agreement without fully understanding it. . . . → Read More: Top Ten Severance Agreement Don’ts
Financial professionals working in the securities industry who are separating from their firms are often presented with severance agreements. Severance agreements for financial professionals are usually drafted to protect the interests of the firm and not the individual broker. The severance agreement may include provisions that restrict the financial professional’s ability to work for other . . . → Read More: Severance Agreements for Financial Professionals
Below are some Massachusetts Severance Agreement FAQs (frequently asked questions) and responses to those questions:
1. What is a severance agreement? A severance agreement is a contract between an employer and a current or former employee. The employee usually gives up certain rights in exchange for pay and/or other benefits.
2. Do employers owe employees . . . → Read More: Severance Agreement FAQs
In Massachusetts, rights of minority shareholders who are also employees in a close corporation, are significantly greater than rights of employees at will. What is a “closely held corporation?” A closely held corporation is one that (1) has few stockholders, (2) no ready market for the stock and (3) the majority stockholder is substantially involved . . . → Read More: Rights of Minority Shareholders and Employees in Close Corporations
Severance agreements can affect collecting unemployment benefits. Severance Agreements are usually written with the employer in mind. While the agreement may give some weeks or even months of severance pay to the employee, the exchange may or may not be fair. If the agreement hasn’t been negotiated, there is a good chance that it has . . . → Read More: Severance Agreements and Collecting Unemployment Benefits
Signed severance agreements in Massachusetts are contracts that outline the rights and responsibilities of the company and the employee. Typically severance agreements are drafted by the company to protect its interests. Despite the fact that the severance agreement may be one-sided, employees often just sign the agreement without fully understanding it.
It is important that . . . → Read More: Negotiating Massachusetts Severance Agreements
What rights, if any, do employees (non-union) have when they are laid off or fired from their jobs? First, Massachusetts law requires that the employer give laid off and fired employees all wages owed. If the company lets the employee go, the employee must be paid on his or her last day, not during the . . . → Read More: Rights of Laid Off and Fired Employees in Massachusetts
Before you sign that severance agreement in Massachusetts, consider whether there are documents that may have an impact on it. A severance agreement is a contract and employees should know the legal impact of the document before they sign it, even if it offers substantial severance pay. Here are a few of the documents you . . . → Read More: Before You Sign that Severance Agreement!
When employers present employees in Massachusetts with severance agreements, they are typically looking to accomplish certain goals, such as: (1) assisting the employee in transitioning to a new job, (2) having the employee waive certain legal claims such as the right to file a complaint for age discrimination; or (3) reinforcing agreements the employee previously . . . → Read More: Understanding Massachusetts Severance Agreements: Part II
Employees frequently ask how their unemployment will be affected by severance payments when they are let go by a company in Massachusetts. Employees who are separating from their company and have been granted severance pay are often filing for unemployment benefits shortly after leaving their job. Depending upon how the agreement is written, the severance . . . → Read More: Massachusetts Severance Pay and Unemployment Benefits