The Crucial Steps to Take Before Signing a Severance Agreement
For executive and high-wage employees facing termination, layoff, or retirement, navigating the world of severance agreements can be complex and overwhelming. The decisions made during this period can have lasting consequences on your financial stability and professional future. To make informed choices, you must gather and review essential documents that can shed light on your rights, benefits, and obligations. In this blog, we'll detail the five documents you should carefully examine before signing any severance agreement.
1. A Complete Copy of Your Personal File
In New Hampshire, employees are entitled to a complete copy of their personnel file under RSA 275:56. This file includes all documents related to your employment, regardless of their location. It's vital to ensure that your employer provides you with all relevant information, such as notes from supervisory meetings or evaluations. Knowing what's in your personnel file can be instrumental in understanding the basis for your termination.
2. Employee Handbook or Manual
Your employer's handbook or policies contain valuable information about your rights, benefits, and obligations. Many handbooks are now online, and once you're terminated, you may lose access to this crucial resource. These policies cover everything from payment for unused paid leave to rights that may have been overlooked, such as protected leaves or workplace accommodations. Understanding these policies can be the key to securing your entitled benefits and rights.
3. Contracts and Agreements
While most employees in New Hampshire are considered "at-will" and can be terminated at any time, some have formal employment contracts. Reviewing these contracts before signing a severance agreement is essential, as it can help determine if your termination violates any agreement terms. Equally important is the examination of any restrictive agreements you may have signed during your employment, such as non-disclosure, non-solicitation, or non-compete agreements. These could still be binding after your termination and may impact your future career opportunities.
4. Collective Bargaining Agreement
If you're a member of a union or your employer has union employees, obtaining and reviewing the collective bargaining agreement is crucial. These agreements outline members' rights and obligations, often concerning layoffs, terminations, disability leave, or early retirement. Even if you're not a union member, you might be entitled to some protections outlined in this agreement, so it's important to read it carefully. Hidden benefits and protections may be discovered, such as continuing health insurance or payments for accrued time.
5. Employee Stock Agreements, Bonus, and Profit Sharing Plans
Understanding your rights to compensation, including final payments of bonuses, commissions, or stock options, is vital. Some employees rely heavily on these components for their overall compensation. New Hampshire law mandates that the terms of compensation be in writing, making it essential to review these agreements carefully.
Conclusion
When facing termination, layoff, or retirement with a severance offer on the table, you typically have between 21 to 45 days to review the agreement. This period is an opportunity to gather all the necessary information to make an informed decision. Most severance agreements involve a release of all claims against your employer, which means giving up your right to take legal action, even if new information surfaces later. While exceptions exist, it's advisable to consult with an attorney for guidance. If you are looking for severance and contract termination attorney in NH, please contact Rice Law Office at: 603-528-5299 or reach out to us through our contact form.
