Employers may require that the terms and conditions of the separation agreement remain confidential. A confidentiality or confidentiality agreement should indicate what remains private – trade secrets, financial affairs, client lists, etc. It must also list exceptions to the confidentiality clause (lawyers, spouses, etc.). Analyze the terms of a separation agreement and research laws in your state. The company will first prepare an agreement to cover its interests. Make sure you sign something that protects your rights. Keep in mind: it is important to understand that if you voluntarily stop or have been fired for improper reasons or other reasons, you may not be eligible for your severance package, even if there is a union, employment or other agreement. Severance pay is taxable income to the employee, so it is important that you transfer your severance contract to your accountant for verification. Depending on how your severance pay is built, your severance pay can be treated as a salary or not.
Also in New York State, your unemployment benefits (assuming eligibility) may be influenced by the type of severance pay you receive. Lump sum benefits are treated in a different way for reasons of eligibility for unemployment insurance compared to “wage maintenance”. Your accountant and work lawyer can help you with this assessment. The following conditions are generally included in the New York Separation Agreements: Make sure you review these agreements and discuss them with your labour law officer – do you have a new job, and do you have the option of violating one or more of these agreements? If so, you may need to include the removal of these commitments in your severance negotiations. And a word to the wise – sometimes workers simply ignore these obligations in their severance negotiations, surely their employer will never seek to impose them. They do so at their own risk. If your new employer is sued for your mistakes, you will be in a very precarious situation. Employers use separation agreements to protect their own interests. Separation agreements often protect confidential information or trade secrets. If there seems to be a way to improve the terms of your separation agreement, we can contact your employer and negotiate on your behalf or coach you in the background so that you can conduct the negotiations.