An Employment Release (release of claims) is an agreement between an employer and an employee whose employment has been terminated from that company. The release of claims is offered in return for the acceptance of a severance package, which serves as consideration for the contract. The intent of the document is to limit potential litigation for reasons such as discrimination or wrongful termination.
The release serves many other purposes, as well. It will also often include a non-disparagement clause, a confidentiality agreement, and a non-compete clause. Failure to abide by these provisions serves as a breach of the agreement, in which case the agreement will have provided a clause for damages.
Generally speaking, it is a good idea to have an attorney review any employment-related document before it is executed. This is especially important for employment releases and severance agreements. There may be terms on which the contract is silent on its face that may potentially be affected by executing the agreement.
Contact our firm to schedule an appointment with a St. Louis lawyer who can draft or review an Employment Release for you or your company.