All employment relationships end. That’s a fact.

Sometimes, the employer decides to offer a severance package to the employee-to-be-separated. Severance agreements generally give the employer and employee a clean and final break, in addition to other mutual benefits. Under Texas law, severance pay is not required, unless a written agreement or policy requires it. See Tex. Labor Code § 61.001(7) (defining “wages”), § 207.049 (defining “severance pay”); 40 Tex. Admin. Code § 821.25(c). If severance terms are desired or received, those terms should be carefully evaluated by the employer and employee.

I primarily represent the employer side of the separation/severance ledger, but I also represent executives in their review and negotiation of severance transactions. That “double-agent” practice allows a perspective that is unique and helpful in counsel, whichever side of the severance transaction I may find myself.

Some severance terms are more complicated than others, but in every instance the devil is in the details. Having managed hundreds of severance situations, I understand and appreciate the various push points and considerations involved on both sides of the ledger – amount and timing of payments or other financial benefits, return of employer property and information, non-compete restrictions, confidentiality, non-disparagement, etc. etc. etc.

The passage of time generally cures ire that may exist between employer and the separated employee. But, placing certain items in binding contractual terms can help the “healing” and protect employer and employee interests.