Resignation and Settlement Agreement: What You Need to Know

So you’ve decided to resign from your job. Maybe you’ve found a better opportunity elsewhere, or perhaps you’re just ready to move on. Whatever the reason, it’s important to understand the terms of your resignation and settlement agreement.

A resignation and settlement agreement is a legal document that outlines the terms of your departure from a job. It typically includes details on severance pay, benefits, and any other arrangements between you and your employer.

Here are a few things to keep in mind when it comes to resignation and settlement agreements:

Severance Pay

Your settlement agreement will likely include details on how much severance pay you’ll receive. This pay is typically based on your length of service with the company and may also take into account your salary and other benefits.

It’s important to note that not all employers offer severance pay, especially if you’re resigning voluntarily. If you’re unsure whether you’re entitled to severance pay, be sure to check your employment contract or speak with your human resources department.

Benefits

Your settlement agreement may also include details on any benefits you’re entitled to after your departure. This may include things like health insurance, life insurance, and retirement benefits.

Be sure to read through your agreement carefully to understand which benefits you’ll still be able to access, and which ones you’ll need to find alternative coverage for.

Confidentiality Clauses

Many settlement agreements also include confidentiality clauses, which prevent you from disclosing certain information about your former employer. This may include trade secrets, client lists, or other proprietary information.

If you’re unsure about what you’re allowed to disclose, be sure to consult with your attorney before signing any agreements.

Non-Compete Agreements

Finally, some employers may require you to sign a non-compete agreement as part of your settlement agreement. This type of agreement typically restricts your ability to work for a competing company for a certain length of time after your departure.

If you’re considering signing a non-compete agreement, be sure to read through it carefully and understand what restrictions it places on your career prospects.

In summary, a resignation and settlement agreement is a legal document that outlines the terms of your departure from a job. It’s important to read through this document carefully and understand your rights and obligations before signing anything. If you’re unsure about any aspect of your agreement, be sure to seek advice from an experienced employment attorney.