No employee in the Denver area wants to get the dreaded call in to the boss’s office or up to human resources for an unspecified conversation or, worse, a conversation about their future at the company. These sorts of conversations usually end with the employee’s getting terminated, either for cause or otherwise.
Employers too, although perhaps for different reasons, rarely find it best to fire an employee they spent time and money to train.
At the time of termination, an employee may or may not receive a severance agreement from the employer, as an employer does not have to offer one. However, even if they do get a severance package, it may well be lopsided in favor of the employer.
On the other hand, an employer may feel like the employer must offer a severance agreement, even if the reasons for terminating the employee are both legal and compelling.
From both sides, our law office feels that it is best that clients consult us before offering, or agreeing to sign, a severance agreement. On the one hand, an employee may not realize exactly how many rights he or she is giving in exchange for what may be a relatively small benefit.
In many cases, a severance agreement may have a non-compete clause or may call for the employee to waive the right to sue. Sometimes, an employee may not realize how much leverage he or she has to negotiate.
On the flip side, an employer may offer an agreement unnecessarily or without thinking through all the consequences.