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disparagement clause generally prevents employees from disclosing certain confidential business information or saying anything negative about their former employer. Confidentiality clauses generally prohibit employees from sharing details of the severance agreement.
Companies Can't Demand Silence for Severance, NLRB Rules | The Muse. Need AI-powered career advice, guidance, support? Ask Maya from The Muse.
Non-Disparagement under a Settlement Agreement A settlement agreement will nearly always include a non-disparagement clause, within which both parties agree not to say anything negative about the other, after the execution of the agreement.
The McLaren Macomb decision put new restrictions limiting how employers can use non-disparagement clauses and confidentiality clauses in severance agreements, holding that typical non-disparagement clauses and confidentiality clauses interfere with employees' section 7 rights to engage in concerted activity.
A "Resignation for Good Reason" clause allows an employee to resign while still receiving severance benefits if significant negative changes—such as a substantial reduction in salary or job responsibilities—occur within the company environment without the employee's consent.
Non-Disparagement. Employee agrees that he/she will not say, write or cause to be said or written, any statement that may be considered defamatory, derogatory or disparaging of any of the Releasees.
Another thing an employer may want in return for offering a severance package is a non-compete agreement. A non-compete agreement can restrict a former employee from working in a business similar to that of the former employer for a given amount of time over a given geographic area.