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Washington State Law Severance Agreements

An additional confidentiality clause in a severance agreement is to prevent the outgoing employee from disclosing the terms of the compensation agreement himself. The employer may wish to avoid disclosure in order to avoid embarrassment or to prevent existing employees from knowing what a former employee may have negotiated as severance pay. An angry former employee, especially the one who was fired, may have unpleasant things to say about his former employer. With the ubiquity of websites where consumers can check companies (z.B Yelp) and on which former employees can describe their experience in a company (for example. B Glassdoor), it is not difficult for an employee to post negative statements about a company in front of a potentially large audience. In order to protect proprietary information from disclosure to competitors, employers often make restrictive agreements with their employees, such as. B non-competition agreements and confidentiality agreements. Ideally, employers should require their employees to sign these agreements before they start working, because the job offer works as a “reflection” – that is, something valuable – necessary to support these types of agreements. But employers (especially startups) sometimes neglect that their employees make these agreements on the front lines. One solution to avoid this is to include a non-formal notice clause in a severance agreement.

An employee`s non-solicitation clause expressly prevents the outgoing employee from dismissing clients and/or recruiting company staff. Often, however, redundancy plans are an attractive option for someone who does not have a job. How the money is distributed to the former employee and the period in which the money is distributed should be clearly defined in the severance agreement. As with non-compete clauses and non-disclosures, employers should really have non-invitation clauses before a worker starts working, but for those who don`t, a redundancy agreement can provide a second bite to the apple. In most cases, a standard severance package consists of one dollar that the employer gives to a dismissed employee as a thank you for the services and time the employee has given to the company. Employers also use severance pay as an incentive to ensure that a dismissed employee signs a confidentiality agreement or other documents such as a pay change agreement, so as not to sue the company or take legal action against the company. Each worker is not entitled to severance pay unless his employer has expressly accepted a severance package, either orally or in writing. Regardless of the circumstances of the dismissal, an employment law officer can assist you in negotiating appropriate severance pay to cover the costs of finding a new job.

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