Choosing a vehicle to purchase and signing a severance agreement are two processes that require some careful consideration. After all, this is your livelihood on the line. What does that have to do with an article that is supposedly about discovering warning signs in severance agreements? In this instance, we will use a rather corny metaphor. A warning sign in a severance agreement is just what it sounds like. In general, we are talking about something in the terms of a document that should raise a concern in the reader or signer. These words or statements should lead a person to pause, think carefully about the matter, and perhaps make some changes.
Okay, so how does this apply to severance agreements in general? The reasons that a person signing a severance agreement should be on the lookout for red flags are similar to those for someone buying a car. After all, you are signing an agreement that may affect you for the next several months or years, including reducing the amount of time that you have to file a lawsuit. That person may be buying a car that he or she intends to drive for several years, with payments that will last for several more. The significance and length of both of these contracts are pretty similar.
In general, a red flag in a contractual agreement may be any of the following. Moreover, other examples may include: Note that the above are general explanations of red flags in contracts. Not all of these terms will be present in a single severance agreement, and some perhaps may appear in others. Apart from the above, a few general “red flags” for a severance agreement include:
The above list is not exhaustive. There is no single way to organize the potentially harmful items in a severance agreement. The presence of any of the above may be reason enough to proceed with extreme caution. In addition, terms that by themselves are not concerning may combine with other elements to raise a red flag.
Even if an employee fails to notice that some potentially harmful term or “red flag” is present in a severance agreement, most employers offer some guidance throughout the process. This may come in the form of a human resources staff member to assist in reviewing the agreement or recognizing when a red flag might be present. The employees may also have access to a union representative or outside expert to help explain the significance of a specific term.
Regardless of the level of assistance available to a person becoming the owner of a new automobile, signing a severance agreement should come with the same education. A worker may find the use of new technology quite helpful. There are many online programs that will explain the common forms of severance agreements. These tools may highlight problem terms that would otherwise be present in a person’s severance agreement without his or her knowledge. Alternatively, these efforts may show the worker that the company has provided a very fair severance agreement with no red flags.
Whether you are looking for a new car or trying to understand the provisions of your severance agreement, take the time to review every word. Just as an ignition warning light indicates there is a problem with the vehicle, a phrase or statement that seems off may indicate that there is a problem elsewhere with the agreement.