Many job offers and promotions entail the signing of a severance agreement. Both the Colorado employer and the employee have a stake in the details of severance agreements and both should be clear that a severance agreement is a legal document in every way. It is advised that both parties have legal representation when a severance agreement is part of the job.
One reason legal support can be beneficial is that many such agreements have a waiver clause. Not knowing what a waiver clause is and signing one anyway can be a massive mistake. A waiver clause essentially states that once the document is signed, you are waiving any right to review it or revise it with an attorney. Also, it can mean you are signing away the right to bring about a legal claim against an employer.
Employers can also lose a lot if they are unaware of the details of a severance agreement. Enforceability can be an issue for employers. A severance agreement should have clearly outlined means of enforcing the agreement. If the agreement is violated, legal support may help guide the process of litigation and finding a way to minimize the damage that may have been done by the violation.
The legal complexities of severance agreements can vary greatly from one industry to another. Having signed one for one industry may not give a Colorado employee a clear idea of what may be in an agreement for a different industry. Legal guidance for all parties can ensure each party knows what to expect and how to go about any issues that may affect the agreement in the future. Our firm has more information about severance agreements in general.
