Letter of Severance (Separation Agreement)

[ratava]

What is the name of your state (only U.S. law)? NY

Recently I was told that I must report to another person about whom I have earlier complained. He bullied me and took credit for my work and ideas. I refused and was left no option but to quit.

The company is offering severance package which is several weeks above standard due to my "services" (actually got very good reviews from co-workers for my work). One of the options in the separation agreement states that "I or my agents will not publicize or disclose, directly or indirectly, the existence of this agreement, the terms thereof, or the circumstances giving rise to the agreement to anyone other than my attorney, accountant, financial advisor and members of my immediate family or as required by law. I further agree that I will advise any individual to whom the terms, conditions or existence of this agreement has been disclosed of the confidentiality requirements of this paragraph and that he will use his best efforts to ensure that confidentiality requirements are complied with in all respects. I also agree that I violate this paragraph, then I shall return to company any and all payments made to me under first paragraph and shall indemnify the company from and against any and all judgments, damages, losses, liabilities, attorney's fees, costs and other expenses that result from my violation of this paragraph".

I'd like to ask members of this forum whether such a paragraph is standard in separation agreements, advice on how to proceed, and whether it would be preferable say to file for unemployment rather than receive severance money so that I won't have to abide by this paragraph.

Thank you in advanceWhat is the name of your state (only U.S. law)?

 

[cbg]

It's actually quite standard, yes, or something reasonably like it.

If you quit, it's unlikely that you'd qualify for UI regardless of whether you sign or not. In the unlikely circumstances that the UI office does consider your situation to be a valid reason to quit and still get UI benefits (and I would not count on that happening), the existance of a severance agreement would not affect your eligibilty, only the date on which benefits would be claimable.

So your choices are, sign the agreement and abide by a standard paragraph or quit without signing and pray that the claims adjuster who receives your claim isn't paying attention to what he is doing.

 

[ratava]

Thank you for your reply. Makes sense.

I'd like also to ask for clarification on the following section of paragraph: "....or the circumstances giving rise to the agreement". This sentence does not sound right, as if I am forced/bought into silence. What is your opinion?

Best

 

[cbg]

This is also quite standard.

 

[cyjeff]

Thank you for your reply. Makes sense.

I'd like also to ask for clarification on the following section of paragraph: "....or the circumstances giving rise to the agreement". This sentence does not sound right, as if I am forced/bought into silence. What is your opinion?

Best

Your silence IS being bought.