Companies are often reluctant to grant an executive severance upon the expiration of the executive’s contract term. When negotiating an executive employment agreement under these circumstances, the fall back position is to eliminate the term completely and become an “at will” employee.
Yet, time and time again employees place too much trust in Human Resource (“HR”) personnel only to learn at a later time that it was a mistake to do so.
Getting fired is a painful experience that usually comes without warning and, sometimes, under suspect circumstances. Depending on the length of the employment relationship and the manner of the termination emotions can often run amok.
Whether it is a new job or an existing one, you may be asked at anytime to agree to limit where you may work or what clients you may contact after your employment ends. The question is not whether these “restrictive covenants” are enforceable but what effect will they have on your career.