Non Compete and Severance
Hello I was recently let go from my company due to cut backs. I did not have a non compete agreement in affect. I was entitled to a severance package. When I received the severance agreement it has a whole page in the agreement regarding non compete. Is this legal and can this be negotiated?
Thank you
Answers (1)
Non Compete and severance
The answer is yes it is probably legal. Since there is no legal obligation to pay severance in the absence of a contract, companies will usually require you to sign away legal rights (in a release) in consideration for the severance. I believe you employer would say they are giving severance in exchange for the non-compete. Any severance agreement can be negotiated, but the question is if the employer is willing to negotiate. Good luck.
posted by Scott Behren | Mar 4, 2005 5:10 PM [EST]
The answer is yes it is probably legal. Since there is no legal obligation to pay severance in the absence of a contract, companies will usually require you to sign away legal rights (in a release) in consideration for the severance. I believe you employer would say they are giving severance in exchange for the non-compete. Any severance agreement can be negotiated, but the question is if the employer is willing to negotiate. Good luck.
posted by Scott Behren | Mar 4, 2005 5:10 PM [EST]
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