Minneapolis employment law attorney Stacey DeKalb discusses what employers should think about when offering a severance package.
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When an employer is considering offering severance to an employee, it’s critical that the employer get a termination agreement that includes a release of claims, but there are a whole multitude of other things that can be included in such a termination agreement, such as a non-compete or non-solicitation provision, if one does not already exist. The employer frequently will want to seek a non-disparagement and cooperation clause, as well as to consider what can be done to help bridge the terminated employee to other gainful employment, and in that case, it may be appropriate a reasonable amount of outplacement services or a mutually agreeable, positive reference letter. Any of the important considerations that an employer has should be factored into that, as well as things such as the confidentiality of its proprietary and trade secret information, as well as a return of property.