Severance Package Agreement

A Severance Package Agreement pertains to an agreement entered into between the employee and the employer wherein the employer promises to give some benefits to the employee upon the latter’s separation from employment. The severance package agreement is usually part of the consideration given to the employee by the employer. This is actually some sort of an additional perks or a bonus package to be given to the employee upon the signing of the contract of employment.

Yet, this will only take its effect upon the termination of the contract or separation of the employee from employment. In fact, the severance package agreement is made part and parcel of the employment contract hence, in case of breached, it can be enforced together with the other provisions violated by either party under the contract of employment.

Of course, for the employee to be entitled to this severance package, he or she must have complied first with the conditions set forth in the severance package agreement. The usual conditions for entitlement to severance package usually include the following: (1) At least 5 to 10 years of service of to the company by the employee; (2) The separation of the employee must not have been brought about by the willful act or conduct of the employee such as indictment due to a crime committed; and (3) That the employee’s separation or termination was not due to some valid ground or justifiable reasons for terminating an employee.

Therefore, if you are planning to include in the contract of employment a severance package agreement, we at Attorneyservicesetc.com can draft and prepare such provision in accordance with the needs of your company. On the other hand, if you are an employee that has been denied of your severance package as stated in your employment contract, we can help you enforce your claim in the courts of law against your employer. In either case, our expert attorneys can definitely help you with your problems.