Severance agreements are a means for employers to minimize liability and employees to bridge the gap to future employment. In Illinois, companies are not required to provide any severance to employees that are terminated or laid off. However, many companies have implemented severance policies that reward employees for length of service and/or types of professions.

Many businesses provide severance as a means of securing a release of claims from an employee or to prevent negative publicity. In such cases, the employee should consult with an attorney that is experienced in reviewing and negotiating severance claims as well as litigating the underlying employment claims.

Severance agreements may be negotiated whether offered pursuant to a company policy, in response to a claim of discrimination or retaliation, or as part of a reduction in force. There is also potential for severance negotiations if the employee wants to resign, but the company wants to bind the employee to non-compete, confidentiality and/or future assistance obligations.

Although Illinois does not generally require severance, certain notice requirements may apply in a reduction-in-force. In such cases, the employer may be liable to provide employees with up to 60 days notice before completing the lay off.

Regardless of the circumstances surrounding your severance agreement, it is always a good idea to have an employment lawyer review the terms of the agreement and identify any potential issues for negotiation.