New Jersey Severance Agreements: What You Need to Know
Employees in New Jersey who are facing layoffs or job losses may be offered a severance agreement by their employers. A severance agreement is a legal document that outlines the terms and conditions of a severance package that an employer is willing to offer to an employee who is being dismissed.
If you are presented with a severance agreement, it is important to seek the advice of a lawyer who specializes in employment law to help you understand the terms and conditions of the agreement.
What is a Severance Agreement?
A severance agreement is a legally binding contract between an employer and an employee that outlines the terms and conditions of the severance package being offered to the employee. The agreement is usually given to employees who have been laid off or terminated from their job due to downsizing, restructuring, or other reasons.
The severance package may include a lump sum payment, continued health care benefits, and other benefits such as outplacement services, or assistance in finding a new job.
What Should You Look for in a Severance Agreement?
If you are presented with a severance agreement, it is important to carefully review the terms and conditions of the agreement before signing it. Here are some of the key things to look for in a severance agreement:
1. Payment Terms: The agreement should clearly state the amount of money that you will receive as part of the severance package, and how and when the payment will be made.
2. Benefits: The severance agreement may include continued health care benefits or other benefits, such as outplacement services, that can help you find a new job.
3. Non-Compete Clauses: Some severance agreements may include non-compete clauses that restrict your ability to work for a competitor or start a competing business. Make sure you understand the terms of any non-compete clauses in the agreement before signing it.
4. Legal Rights: The severance agreement may include a waiver of your legal rights to sue your former employer. Make sure you understand the legal implications of signing such a waiver.
5. Confidentiality: The agreement may include a confidentiality clause that restricts your ability to disclose information about the company. Make sure you understand the terms of any confidentiality clauses in the agreement.
What are Your Legal Rights?
Employees in New Jersey have legal rights when it comes to severance agreements. New Jersey law requires employers to provide employees with a written disclosure of the terms and conditions of the severance agreement. Employees have 21 days to review the agreement and can revoke their acceptance of the agreement within seven days of signing it.
If you are presented with a severance agreement, it is important to seek the advice of a lawyer who specializes in employment law to help you understand your legal rights and the terms of the agreement.
Conclusion
If you are facing a layoff or job loss in New Jersey, you may be offered a severance agreement by your employer. It is important to carefully review the terms and conditions of the agreement before signing it, and to seek the advice of a lawyer who specializes in employment law to ensure that your legal rights are protected. By understanding the terms of the severance agreement, you can make informed decisions about your future and take steps to secure your financial and professional well-being.