Texas Law Severance Agreements

Severance pay is often offered as a means of allowing the employer to minimize the risk of potential litigation (for discrimination, harassment and other workplace rights that the former employee may wish to pursue). In many cases, a worker may be much more inclined to assert a right after being unable to work with the employer. As such, an employer – even if it does not believe that it is responsible – can offer severance pay, and in return, the worker agrees to release any rights he may have against the employer. Many workers will not file charges of discrimination or workplace safety claims while employed for fear of losing their jobs; But when work goes away, it`s scary. There is an increasing opportunity to take legal action. By renouncing these rights, the company can avoid all of this. If you have no reason to think you have a claim against the company, the starting package is probably a good deal, but you may still want to have it checked by a lawyer. However, if you have a right, the severance agreement is probably not a fair amount to pay your right. What is a severance agreement under Texas law? Under Section 207.049 of the Texas Unemployment Compensation Act, “dismissal pay” is defined as “the income of dismissal or separation paid in the event of termination of employment in addition to the employer`s income at the time of dismissal.” Yes, in most cases.

Here too, it all depends on the language of the agreement and the circumstances in which it was signed, but a severance agreement that meets fundamental criteria can certainly be applicable in Texas. Most employees accept confidentiality clauses in their employment contracts or by accepting employment through the terms of the personnel manual, and these clauses protect the company in some way, but some information that the company wishes to keep confidential cannot really be treated confidentially. A simple example is a non-compete clause for a seller. If you sell paper for Dunder Mifflin, the company may have started keeping customers` names and information confidential; But when you start your own paper business, how can you not know that local law firms or publishers need paper? Sometimes instantly, but again, it depends on your specific employment times and the type of severance pay.

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