When a physician in Pennsylvania starts a new job the last thing on their mind may be leaving it someday. Still, moving from one job to another is not unusual for physicians. If a physician is being terminated or is otherwise being encouraged by their employer to resign, the physician may be offered a severance agreement.
What is a severance agreement?
As a physician, you may be asked to sign off on a severance agreement when your position is being terminated or when your employer wants to encourage you to voluntarily leave your position. A severance agreement dictates what payment and benefits you will receive if you are laid off or otherwise leave your position. In exchange for the offerings in your severance agreement, you agree not to sue your employer, with some exceptions.
Severance agreements have become routinely standard, especially for physicians in executive positions. The main benefit of a severance agreement is it can provide you with the financial resources and benefits you need if you are laid off and do not have another job lined up yet.
Clauses to look out for
There are some clauses in a severance agreement that are not necessarily in a physician’s favor as an employee. These include non-compete provisions, non-solicitation provisions and non-disparagement provisions. These types of clauses place limits on who the physician can work for and where. These types of clauses also limit what the physician can say about the employer and whether they can contact former patients and former co-workers in an effort to have them follow them in their new venture.
Severance agreements are common for executives
Physicians, especially those in executive positions, will often be offered a severance agreement if they are laid off. These agreements benefit employees in some ways but also generally have restrictions in favor of employers. Physicians in Pennsylvania who are offered a settlement agreement can have a professional review it to ensure that signing is in the physician’s best interest.