Severance agreements – contracts which set terms of compensation and other considerations surrounding the end of an employment relationship — are especially prevalent for company executives, such as Chief Executive Officers (CEO), Chief Operating Officers (COO), Chief Financial Officers (CFO), Vice Presidents and other similar positions. Although severance agreements are useful tools that can help you fund a job search and pay for expenses during a transition period, they typically also require that you waive your right to bring a lawsuit against the company.
At Rathod | Mohamedbhai LLC, we have the extensive employment law background necessary to serve as counsel for executives in legal matters. We are equipped to help executives in Denver and the surrounding area examine and litigate matters related to these agreements and all other employment issues they face. Our experienced trial lawyers work diligently to ensure that you are treated fairly by your company, and that you always know where to turn for trusted legal advice.
The employment contract may be an express contract, stated verbally or in writing between the parties, or it may be an implied contract based on the employer’s policies or other sources of implied contractual terms.
A promise of employment for a definite duration without an expressed at-will term may be inconsistent with at-will employment security provisions contained in employee handbooks, personnel policies, letters of employment and performance evaluations. A course of dealing may, in the absence of an adequate disclaimer, supply the terms for an implied-in-fact employment contract which requires termination for cause.
Non-Compete And Trade Secret Agreements
While severance agreements can encompass any range of issues associated with the end of an employment arrangement, they almost always include non-compete and/or trade secret provisions. These clauses restrict your ability to seek other work, especially with a company’s competitors, within a predefined area and for a specific length of time. However, non-compete clauses cannot be unreasonable in:
- Scope: The non-compete clause cannot prevent you from doing any type of work, and must often be restricted to the same type of position you currently hold.
- Geography: The limiting provisions cannot be so limiting that you have to move across the globe simply to find another position.
- Time: The non-compete can only prohibit your employment in a certain field for a reasonable amount of time.
With the ability of any business to have a global presence via the web, non-compete agreements are becoming an especially complicated legal topic. We remain on the forefront of developments related to non-competes and other employment law topics so that we can offer the cutting edge representation you deserve.