Martin Janoušek

603 151 061

603 151 065




The main reason why severance agreements are attractive to outgoing workers is clear: additional pay. But the reasons why employers apply severance agreements are often more complex and diverse. This contribution will address a handful of the most common reasons why employers apply severance agreements. An employer may offer an employee severance pay to terminate the business relationship and avoid future litigation. An employee cannot fully understand what the contract means or how it will impact him in the future. Without this knowledge, a worker may sign his rights, jeopardize future employment opportunities and waive the right to sue the employer. An employment law specialist helps you negotiate the right separation agreement on your behalf. This language indicates that HB 1450 will apply to non-competitive agreements concluded before January 1, 2020, when an employer complains of having them enforced after January 1, 2020. It is not clear how that will happen with respect to certain provisions of the act. For example, neither the text of the statutes nor the legal history responds to the legislature`s intention to invalidate existing agreements simply because they were submitted to a worker after the worker signed a letter of offer and without independent consideration. The law makes Washington the first state to set minimum pay thresholds for non-compete contracts with employees and independent contractors.

As soon as the law comes into force, non-competitive alliances will in themselves be „null and unenforceable“ against employees who earn less than $100,000 a year from the party that wants to impose them. Washington Gov. Jay Inslee recently signed a law that radically changes the state`s law on competition bans and moonlight bans. The bill will come into force on January 1, 2020, but it contains retroactive provisions. Financial stability after termination of employment may depend on a compensation agreement. We negotiate an agreement with your employer that keeps your current and long-term goals in mind. In addition to signing a severance agreement, you may also be asked to sign a non-compete contract or other executive contract. Before signing a document on the termination of your employment, it is important to speak to one of our lawyers. Enter the no-disappear clause. This clause prevents the outgoing employee from making negative statements about the company and sees possible financial consequences for the breach of the agreement.

In some cases, the disparation clause is made to each other, resulting in both the company and the outgoing employee making negative statements about the other. Of course, the employer does not want to be sued and can thus offer severance pay to the outgoing employee in exchange for signing a debt release. This release effectively prevents the outgoing employee from suing the employer. For employees, it`s important to understand your leverage when a compensation package is offered to you. For example, if you have a potential right against your employer (for example. B for irregular termination), you may be able to negotiate an advantageous severance package, but if you accept your first offer and release your right, that`s all you get. An employment law specialist in Washington can help you assess your negotiating strengths and weaknesses. An additional confidentiality clause in a severance agreement is to prevent the outgoing employee from disclosing the terms of the compensation agreement himself.

The employer may wish to avoid disclosure in order to avoid embarrassment or to prevent existing employees from knowing what a former employee may have negotiated as severance pay. A separation agreement defines the conditions under which a worker leaves a company at the end of his employment. After a layoff, many employees quickly sign a separation contract without fully understanding the terms of the document.