Tip of the Month: Severance Agreements are Beneficial for Employers AND Employees

Most of us are aware of the severance agreement, but many see it as having one-sided benefits. When the severance agreement is handled correctly, it actually provides substantial benefits to both the employer and the employee. Benefits of the Severance Agreement for Employers and Employees:

Employers can generate good will amongst their current employees leaving them with a sense of stability knowing that if layoffs DO occur, they won’t be pushed out the door in the cold without a safety net to cover them during the transition to another job.Severance agreements are a voluntary contract between two parties put in place when terminating the employee/employer relationship. They aren’t meant to put the employee at a disadvantage. They also aren’t intended to hurt the employer. Treat them as a contract for moving forward post employment. Get in touch for additional information on generating severance agreements that are beneficial for all parties.