EMPLOYMENT CONTRACTS AND SEVERANCE AGREEMENTS

Employment Offers and Written Employment Agreements

Texas is an “at-will” employment State, meaning an employer or employee can terminate the relationship at any time, for any reason, or no reason at all, as long as the reason is not unlawful. The terms and conditions of employment of “at will” employees are generally found in the employer’s Employee Handbook or written Policy Statements.

  • However, managerial and executives are often offered Employment Contracts containing the terms and conditions of employment. Frequently, the employee is first sent an Offer Letter which sets forth the terms and conditions of their employment. If the employee accepts the Offer, the Offer becomes a legally binding contract if it meets certain requirements of a valid Offer. Sometimes, once the employee accepts the valid Offer, the employer does not follow up with a written Employment Agreement. But, more often than not, a written contract which further defines the employment relationship follows.  

Key components of a valid employment offer:

·        It is in writing and clearly details the employment terms

  • It contains specific details: 

    • Job title, Department, and a brief description of the role and its responsibilities.

    • Compensation, including salary, how it will be paid (e.g.weekly, biweekly), potential bonuses and other allowances.  

    • Start date

    • Details on benefits (e.g., health insurance, paid time off)

    • Employment contingencies, such as passing a background check, drug screening, or providing necessary paperwork

    • It requires acceptance and that the Offer will become legally binding when the candidate formally accepts the terms, either verbally or by signing and returning the document.

Red Flags of a Fraudulent Job Offer: Be aware that in the course of your job search, you could easily become a victim of scams that often appear too good to be true and can aim to steal your personal information or money. Key red flags include offers with high pay and low requirements, requests for money or sensitive data like Social Security or bank account numbers before an interview, and communication from personal email addresses or unverified sources. To stay safe, always research the company independently, verify contact information through their official website, and never pay for a job or provide sensitive data upfront. 

Severance Agreements

A Severance Agreement is a contract between an employer and employee that outlines the terms of separation, such as severance pay, benefits (e.g. continued health coverage) and payment of unused PTO), in exchange for the employee releasing claims against the employer. Texas law does not require that an employer offer a Severance Agreement to departing employees, many do to avoid legal disputes through a release of claims clause and protect against the disclosure of confidential information the employee had access to during their employment. Further, many employers include restrictive covenants such as non-competes in the Agreement to preclude the employee from competing with it after their employment ends. While some terms are standard or required by law (like the 21-day review and 7-day revocation period), most of the Agreement can be negotiated, including the amount and timing of payments and other benefits.

Before you accept a Severance offer, it’s smart to consult with a skilled Severance Agreement Attorney like Deborah. It can be a challenge to decide whether it is in your best interest to agree to the terms of a Severance offer from your employer. Deborah can help you fully understand the effect that signing the proposed documents may have on your future and give you the information you need to decide whether you want to try to negotiate your employer’s monetary offer.

Deborah will review the proposed Agreement, speak with you about your employment history with your employer and the circumstances surrounding your  termination or layoff. She will discuss with you the proposed Agreement in detail, examining any non-disclosure or non-compete restrictions, releases, and other provisions contained in the Agreement, as well as the pros and cons of accepting the Severance offer or opening negotiations for a more lucrative and/or less restrictive Agreement. The right legal representation may be able to help you increase the value of the initial offer your employer has offered you.