Have you learned that you are probably fired from your current position and therefore waiting for a compensation package? It is important to learn more about severance agreements in Texas and understand what a severance agreement is and how it can affect you. Do you sign it or not? I think a FAQ based on how Texas handles severance pay is the best way to make you think. 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. » It is a crude way of looking at it, but at the end of the day, it is simply a transaction. Whether this is a good deal for you depends on whether you have known the value of the claims you renounced when you signed the agreement. This is one of the reasons that may lead someone to recant with a certified staff lawyer before signing a severance agreement. Sometimes instantly, but again, it depends on your specific employment times and the type of severance pay. And the way you deal with severance pay at the Texas Workforce Commission can have an impact on whether it will trigger a red flag about fraud – if you seem to be working for the employer while you`ve cashed in on unemployment. If there is a real severance pay in exchange for waiving the rights to sue the company, then it is not a fraud, but it is always good to also avoid opening a fraud investigation against you. Employees have 21 days to consider an agreement.
At the end of the 21-day period, the severance contract is null and void. The severance agreement « Let`s just be friends » is generally for the entry level of lower management employees during the reduction of the time in force. The goal is really to end the relationship amicably and tie all ends loose. Typically, the company offers some extra money as a lump sum or a calculation of the length of service and salary. It may also propose expanding health care or encouraging a retirement plan. Because lower-level employees generally do not have access to confidential corporate information or customer files, these employees generally present a low risk of harming the business by going to a competitor or creating a competing business.