When an employee is being let go from a company, it’s not uncommon for the employer to offer a severance agreement. This agreement outlines the terms of the separation, including any compensation the employee will receive and any conditions the employer requires the employee to adhere to.
It’s important for employees to understand the terms of the severance agreement before signing it. One of the most important factors to consider is the revocation period.
The revocation period is the amount of time an employee has to change their mind about signing the severance agreement. In most cases, the revocation period is 21 days. This means that the employee has 21 days to review the agreement and decide if they want to sign it or not.
During this time, the employee can consult with an attorney or other advisors to make sure that the terms of the agreement are fair and reasonable. They can also negotiate any terms they are uncomfortable with. If the employee decides not to sign the agreement, they can revoke it within the 21-day period without penalty.
It’s important to note that the revocation period only applies to individual employees. If a group of employees is being let go as part of a mass layoff or plant closing, there may be different rules governing the revocation period.
If an employee decides to sign the severance agreement, they should make sure to do so within the revocation period to avoid any issues down the line. It’s also important to keep a copy of the agreement for future reference.
In summary, the revocation period is an important aspect of a severance agreement that employees should be aware of. Taking the time to review the agreement and consult with advisors during this period can help ensure a fair and reasonable outcome.