When terminating your job contract, your employer may offer a severance package. Unfortunately, many employees in Texas don’t understand such packages and fail to evaluate whether the offer is fair and enough. If you are in such a situation, you should meet an Austin severance package agreement lawyer to get genuine and transparent advice. Here is a quick overview for your help. 

Understanding severance packages

A severance package is when an employee agrees to pay a certain sum of money to an employee in return for other things. Such documents are made by the employer’s attorney, and typically, the employee who is leaving is asked to sign a release of legal claims. You must understand that severance is not mandatory according to Texas laws unless your company has a policy for that. In most situations severance packages are discretionary. 

Why do employers offer a severance package?

There are multiple reasons why employers may offer a severance package to departing employees, such as – 

  • The company may want to recognize the efforts and contributions of the employee
  • The company is worried about certain things, such as litigation
  • The company wants to implement a non-compete agreement to prevent the employee from joining a competitor
  • The employment contract includes a severance package

In most situations, employers don’t want an employee to file a lawsuit on any ground, and a severance package is like an offer to ensure that.

What is included in the severance package?

In most cases, a severance package includes a payment. There could be other things like stock options, holiday time, sick time, and bonuses. Note that employers will consider these elements based on the facts of the case. 

Do you need an attorney?

The short answer is yes. Just because your employer is offering a severance package doesn’t mean they are being fair or have included all that you deserve. Lawyers specializing in employment and labor law in Austin can help you discuss and negotiate your severance package efficiently. They will also ensure there are no terms and conditions that can impact your ability to find the next job. An attorney already knows the legalese and will understand how the document is likely to benefit you. 

Final word

There is no denying that a severance package is a great way to leave your employer, but it is important to ensure you agree to the right things before signing the document. Don’t forget to ask relevant questions when you meet an attorney to understand more details.