Sample Severance Agreement With Non Compete

Sample Severance Agreement With Non Compete

There are certain professions where severance contracts are commonplace. If the sale of a business involves the dismissal of the previous owner, it is likely that it will have a non-compete clause in its severance package. Technology companies, biotechnology companies, retail companies, start-ups and other companies of very high intellectual value and trade secrets generally contain non-compete clauses in their severance agreements, as do most senior executive contracts and other C Suite executives in all kinds of companies. However, there are also some professions that do not allow non-competitive clauses in severance agreements as a matter of public policy. One of these branches is that a non-competition clause, also known in its full form as the non-compete clause, is a provision that prevents the worker from competing with his employer for a certain period of time and in a given geographical area. In Massachusetts, non-competition prohibitions generally cannot exceed one year, except in certain circumstances. Geographically, the non-competition clause can generally only apply to areas in which the worker has provided services or has had a significant presence or influence in the last two years of employment. A non-competition clause is also limited specifically to the types of services provided by the worker during the last two years of his employment. Severance agreements are sometimes written in the form of letters to employees. This is sometimes called termination letter, and it contains all the same details you will find in the standard compensation agreement.

Below is a compensation agreement for copy and paste, a free download of the severance package and other information on severance pay. A severance package for workers over the age of 40 must contain information on the Employment Age Discrimination Act, which protects workers over the age of 40 from age discrimination. If you use a model for workers over 40, make sure that the layoff is clearly related to their age.


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