LEGAL OPINION
The severance agreement contains all the necessary provisions. It provides
compensation/benefits at the time of separation in exchange for you as the
employee waiving any claims against them as your employers and not engaging in
employment in competition with them for 24 months.
On the issue of the separation date, you can inform your employer of the error on the
date of separation, which should be rectified before you sign the agreement.
On the non–compete clause, though it is legal, the terms should be fair and not be
oppressive to one party, i.e., you. You can renegotiate the terms on the following
options; –
i. Reduce the number of months from 24 months.
ii. Restrict the non-compete engaging directly with the competitors.
iii. Reduce the limited area size of the applicability of the non-compete clause.
The benefits are only equal to 3 months’ salary; this is not fair to you as you will be
out of the job for two years.
The employer should consider reducing the period for the non-compete clause, the
area size, or increasing the benefits to more than three months.
Below is a sample of how the non-compete clause may read; –
“Employee agrees for a period of 6 months after the termination of their
employment, not to directly compete with the Employer or own, manage,
operate, solicit, hire, recruit, or be employed with any business similar to or in
competition with the business conducted by the employer in the immediate
neighboring states in which the employer conducts business.”
The clause mentioned above will be fairer to both parties.
Suppose the employer does not accept the terms. In that case, you may choose not
to sign the agreement and be free to institute any claims against them and have the
freedom to work in any business or company with no regard as to if it competes with
the employer directly or indirectly.
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