Shhhh! Negotiating a Confidentiality Clause in a Severance Agreement
// Dallas, Texas, United States // Attorney Keith Clouse (Blog) // Keith Clouse
When an executive leaves an employer, he may receive a sizable severance package. The employer may want to keep the terms of that package confidential. For most executives, this is not a problem, as long as the severance agreement provides for a few exceptions to the confidentiality requirement.
An executive may negotiate for a confidentiality clause that excepts certain people or situations from secrecy. For example, the executive should be able to discuss his severance agreement and package:
• With his immediate family; • With his professional advisors (his attorneys, financial planners, and accountants); • In connection with a legal proceeding pertaining to the severance agreement; and • If the executive is compelled by legal process to discuss the matter in court. (Often, the employer asks that the executive inform the employer if this happens.)
While a confidentiality clause does not take effect until after the agreement is signed, an executive should be discreet during the negotiation process. Doing so enables the parties to negotiate freely without letting outside concerns interfere with the negotiation.
To learn more about negotiating severance packages, contact an employment lawyer in your area. This article is presented by the employment law attorneys at Clouse Dunn LLP. For inquiries, send an email to debra@clousedunn.com or call (214) 239-2705.
Contact Keith Clouse
KEITH A. CLOUSE
Clouse Dunn LLP
214.220.2722 214.220.3833 ( fax) keith@clousedunn.com
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