Difficult Contract Negotiations ?

"Most people in Massachusetts are ‘at will’ employees, but some employees are fortunate enough to benefit from a written agreement that identifies each party’s respective obligations. 

Employees should consult with an attorney to make sure that the contract is not lopsided.  For example, the employee should consider negotiating for an ‘opportunity to cure’ in the termination provision.

Employers want to make sure that the Employee’s duties are clearly articulated, to lessen future contract disputes.”

John Davis

 

SEVERANCE PACKAGE REVIEWS & NEGOTIATIONS.

Back in the “good old days”, companies would reward their employees with a severance package that paid the employee wages and other benefits in return for their years of loyal service.

The landscape has changed. Today, businesses rarely offer a severance package or “golden parachute” unless the employee is willing to sign a release, which is a binding agreement that is designed to prevent the employee from filing any claims against the company. Because almost every severance package offer incorporates a “release of claims”, it is prudent that the employee consult with an experienced employment law attorney.

For businesses, it sometimes makes sense to offer a severance package even if the employee did not endear himself or herself to the company. In other words, sometimes it makes sense to agree to pay a certain amount of money to the employee in return for a release because it buys ‘peace of mind’ from lawsuits that are arguably frivolous. Unfortunately for some businesses, they feel compelled to offer a severance package to ‘less than stellar’ employees simply to ensure that the company will not have to engage in the protracted, expensive litigation process.

On the flip side, many businesses hesitate to fire a ‘problem employee’ because of the fear of a lawsuit. One mechanism available to companies is to provide a severance package that includes the “release of claims” because it buys the company peace of mind. In other words, it may be worth paying the employee some additional unearned wages at the termination of the employment relationship versus spending significantly more money defending the company’s actions in litigation.

It is also worth noting that a severance package with a release of claims to an employee over the age of forty (40) should remember that the Older Workers Benefits Protection Act (OWBPA) imposes certain requirements for the release of claims to be valid. For example, the document must provide the employee a 21 day review period and a 7 day revocation period. There are numerous other requirements pursuant to OWBPA.

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If you are interested in becoming a D&D client, please contact us through our website or call our telephone number (617) 338-5770 to schedule a consultation with a member of the D&D legal team.

Clients have said:

"John took one look at my non compete and disassembled it within minutes. He had a clear understanding of the legal principles behind his reasoning and explained his actions clearly. John communicated quickly and efficiently and made sure that the result of his work was 100% in line with my expectations.

John also made sure to set expectations accordingly and to give me all my options. While my ex-company hired one of Boston’s largest law firms against me, I felt completely confident that they stood no chance against John.

John also prices his services reasonably compared to some of the other lawyers in town. He is a specialist in employment law which makes him more effective when dealing with large generalist firms. I have recommended John to several individuals as well as companies.

Hopefully, I will not need John’s services again, but if I do, his card is always in my wallet."

77 Franklin St., Boston

Our Employment Law Firm's offices are located at the corner of Franklin and Arch Streets, across from the Boston Stock Exchange, just minutes from all MBTA lines