Regardless of whether you are leaving your employment voluntarily or your employer terminated the employment relationship, the departure from a position is rarely easy. You do have certain rights under federal and Massachusetts law, and your employer must comply with various regulations. With the right exit plan in place through effective severance negotiations and a valid, enforceable agreement, you can ensure a smooth transition into your next environment.
Our experienced employment attorneys at Rodman Employment Law are here to assist you through the challenges involved with severance negotiations and the severance agreement that results from these discussions. We can discuss your rights and responsibilities after reviewing your situation during a quick consultation, but some general information may also be helpful.
At its core, a severance agreement is a contract that governs the relationship between an employer and soon-to-be-former employee upon termination of the employment arrangement. The agreement incorporates the typical rules and regulations of Massachusetts contract law, along with some concepts that apply only to severance situations. Generally, a severance agreement and the negotiations surrounding it require you to release any claims you have against your employer, in exchange for the benefits package your employer offers.
A common misconception about severance agreements is that all employees are entitled to them, but this is not the case. Massachusetts is an employment at-will state, so an employer can terminate an employee at any time, for any reason. You are entitled to receive, on the day of your discharge, unpaid wages, unused vacation time, and certain other benefits under the Wage Act. However, you are not entitled to a severance package.
As a contract, your severance agreement must include offer, acceptance, and consideration to be enforceable. The legal definition of consideration is a bargained-for exchange of some item of value, to support the obligations of the contracting parties. In severance agreements, this consideration must be some benefit to you that is above and beyond your normal salary. You are undertaking new obligations by signing the severance agreement, so your employer must as well.
Federal law on severance agreements may be relevant to your situation as it concerns deadlines. For instance, the Older Workers Benefit Protection Act applies if you are over 40 years old and your employer requests you to release any claims you may have for age discrimination. You must be given at least 21 days to review a severance document under the circumstances, or 45 days if the terms of a severance package impact an entire class of employees. In both cases, you can revoke your acceptance of a severance agreement within seven days. To protect your rights, you must take action according to these deadlines.
