This is a sponsored column by attorneys John Berry and Kimberly Berry of Berry & Berry, PLLC, an employment and labor law firm located in Northern Virginia that specializes in federal employee, security clearance, retirement, and private sector employee matters.
By Kimberly Berry
In the Commonwealth of Virginia, most employees are considered “at will,” which means they can resign or be terminated at any time. When employment ends, an employer may offer severance to an employee in exchange for the employee’s waiver of his or her rights, including the right to sue for any work-related issues.
In Virginia, in the absence of an employment contract, an employer usually has no obligation to provide an employee severance pay. If severance pay is offered, an employer will provide the employee with a severance agreement.
What Is A Severance Agreement?
A severance agreement is a contract between an employee and an employer that specifies the terms of an employment departure. Severance agreements can be offered in cases of terminations, resignations, layoffs and/or retirement.
In order for a severance agreement to be valid, it must usually provide something to the employee to which the employee is not already entitled. For example, in most cases, a certain financial sum is provided to the departing employee by an employer in exchange for a waiver of rights, usually referred to as a general release, by the employee.
In addition, in Virginia and many other states, employers are generally required to provide an employee time to consider a severance agreement before signing. The Older Workers Benefit Protection Act, in part, requires that an employer provide employees over 40 years of age with a 21-day consideration period, or a 45-day consideration period in the case of a large reduction-in-force, and at least a seven-day revocation period.
Oftentimes, employers rush employees to sign a severance agreement and do not adhere to the procedures for severance agreements.
The terms of a severance agreement are generally negotiable between the employer and employee. However, an employee will not necessarily be told this when the employer offers the severance agreement.
Potential Considerations With Severance Agreements
Some of the issues to consider in advance of signing a severance agreement may include, but are not limited to, the following:
- Financial terms and timing of severance payments
- Tax issues
- Continuation of employment benefits
- Ability to claim unemployment compensation
- What claims are waived
- Confidentiality terms
- Non-disparagement
- Re-employment/re-hiring possibilities for departing employee
- Scope of non-competition after leaving employment
- Preservation of trade secrets
- References and points of contact
- Recommendation letters
- Consequences of violating the severance agreement
Each case is different and an employee may need legal representation in negotiating a severance agreement. Before an employee signs a severance agreement, he or she should consult with an attorney to discuss the rights that he or she may be waiving and the terms of the severance agreement.
If you need assistance with negotiating a severance agreement in Virginia, please contact our office at 703-668-0070 or at www.berrylegal.com to schedule a consultation. Please also like and visit us on Facebook at www.facebook.com/BerryBerryPllc.
Recent Stories
Governance Change Postmortem –With their dreams of swift legislative action in Richmond quashed, proponents of Arlington governance changes say they’re not backing down in an effort to achieve their goals….
Good Monday evening, Arlington. Let’s take a look back at today’s stories and a look forward to tomorrow’s event calendar. 🕗 News recap The following articles were published earlier today…
An 18-year-old Arlington woman is facing a litany of charges after an reported bike theft led to violence. The incident happened Sunday evening near the intersection of S. Walter Reed…
What do I do if school doesn’t fit my kid? That’s the question that so many of the parents and families ask when they’re looking at small independent schools like…
Well-Paid Maids recently unveiled a new scheduling system.
That means it’s easier than ever to book your professional home cleaning with the only certified living-wage home cleaning service in the D.C. area.
Here’s what to expect when you book your cleaning:
-
Select your location.
-
Choose your service (i.e. 1 BD/1BA). (This is also where you’ll see the rate.)
-
Pick your cleaner. (If you don’t have a preference, opt for “any available.”)
-
Schedule a date and time. You can also set up recurring cleanings and get a discount!
-
Enter your information and reserve.
Are you facing life’s challenges, feeling overwhelmed, or seeking personal growth? Embrace the path to emotional well-being with our expert psychotherapy services!
Why Choose Us?
Our team of compassionate and experienced psychotherapists is here to guide you on your journey to inner peace, self-discovery, and positive change. We provide a safe and supportive environment where you can explore your thoughts and feelings without judgment.
What We Offer:
✔️ Individual Therapy
✔️ Couples Counseling
✔️ Anxiety & Stress Management
✔️ Depression Treatment
✔️ Trauma Healing
✔️ Self-Esteem Building
✔️ Life Transitions Support
✔️ And Much More!
Portofino Italian Wine Dinner, April 6, 6:30pm
Four course Italian dinner, paired with 2 wines each. The wines will be served “blind” and notes on each wine will be discussed. The event is coordinated with Elite Wine Importers and The Portofino Restaurant. The dinner is on Saturday,
Live Comedy Showcase Starring Winston Hodges
Friday, April 19
8pm (Doors open at 7)
Crystal City Sports Pub – 3rd Floor Lounge
Arlington, VA