Some employment law contracts are broadly flexible and with applicability across an encompassing range of subject matter. They can also be equally relevant for both employers and workers.
Initial points to note concerning a separation agreement
One preliminary observation to note about a separation agreement concerns drafting. A separation agreement “can be part of a larger employment contract or a stand-alone contract.”
Such contracts are often perceived as primarily – if not exclusively – benefiting employers and sometimes even infringing on worker prerogatives, but a separation agreement can actually yield reciprocal benefits in many instances.
From management’s perspective, such a contract can promote many key goals. It can seek to impose restrictions on an individual’s imparting of information/data to a new employer. It can mandate continued confidentiality concerning select matters. Importantly, too, it can lawfully preclude a terminated worker from pursuing post-employment litigation for alleged grievances.
In return for executing a separation agreement, a worker can also sometimes garner a number of key benefits, ranging from a severance package and other financial remuneration to the continued receipt of company health entitlements.
Both employers and workers can reasonably have questions or concerns regarding a separation agreement. A proven business law team can timely and effectively respond to them.