Termination Agreement Non Disparagement: What You Need to Know
When an employment relationship comes to an end, it can be a stressful and emotional time for all parties involved. In an effort to avoid potential legal issues and maintain professional reputations, many employers choose to include a non-disparagement clause in their termination agreements.
What is a non-disparagement clause?
A non-disparagement clause is a contractual agreement between the employer and former employee that prohibits either party from making negative or derogatory statements about the other. This includes any communication that could harm the reputation of the employer or the former employee, such as social media posts, comments to the press, or negative feedback to clients or colleagues.
Why include a non-disparagement clause?
The inclusion of a non-disparagement clause in a termination agreement can be beneficial for both parties. For employers, it can help protect their company’s reputation and prevent potential legal action if a former employee were to say something negative about the company. For employees, it can protect their professional reputation and maintain their chances of securing future employment opportunities.
What does a termination agreement non disparagement clause typically look like?
A typical non-disparagement clause in a termination agreement might read something like this:
“Both the employer and employee agree to refrain from making any negative or derogatory statements about the other party, both verbally and in writing, to any third party. This includes but is not limited to any communication to clients, customers, colleagues, or the press.”
It is important to note that specific terms may vary based on the employer and circumstances surrounding the termination.
What are the consequences of violating a non-disparagement clause?
If either party violates a non-disparagement clause, they could be subject to legal action. Depending on the severity of the violation, the offending party could be held liable for damages or face other consequences outlined in the termination agreement.
In conclusion, a non-disparagement clause can be a valuable addition to a termination agreement. It can help prevent legal issues and maintain professional reputations for both the employer and former employee. It is important to carefully review and understand the terms of the agreement before signing.