Legal Question in Employment Law in Illinois
Can a ''Non-Compete'' clause become a condition of a severance package?
I have been an employee of the same firm for 29 years, and have been the sales manager for the past five. I believe that I face the possibility of discharge due to slow sales. If and when this event occurs I may be asked to sign a non-compete agreement as a condition of a severence package. There is nothing in writing within our organization (that I am aware of) that spells out terms and conditions of severence. How binding are non-compete agreements? If presented with such a condition, can I take some time for review, before I sign?
1 Answer from Attorneys
Re: Can a ''Non-Compete'' clause become a condition of a severance package?
I recently handled a similar case for a client only a few months ago. Unfortunately, with the sagging economy, employees are frequently left holding the bag on slow sales.
That said, a non-compete agreement is adequate consideration for receiving a severance package. Courts, however, view non-compete agreements restrictively. Thus, the non-compete must be reasonable in duration, scope and geography.
It makes perfect sense to be able to take the proffered contract -- the contract containing the non-compete and the severance provisions -- to an attorney for review (or even to look it over for a few days).
-- Kenneth J. Ashman; [email protected]; www.lawyers.com/alo
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