If you have lost your job and your employer offered you a golden parachute, you may find yourself confused by what this means and whether or not you should take advantage of it. Golden parachutes are common in Texas and given to employees that have lost a job during a merger or company takeover. Here is more information about them and some of the drawbacks of accepting one.
What they include
A golden parachute is basically a severance package that offers some sort of lucrative monetary compensation. It can include a wide variety of different things such as severance pay, stock options or pension benefits.
Golden parachutes will allow employees to not experience as great of a financial loss as they would if they had gotten laid off without any sort of monetary compensation. This money can allow them to alleviate some of the financial stress that they would normally feel while they are looking for a new job.
For those that take a golden parachute, they usually waive their rights to take legal action. If they feel as if their employer laid them off in an unjust way such as resulting from a business dispute and want to seek legal counsel, they often waive their rights to do so if they sign a golden parachute contract.
Before you sign a golden parachute contract, you need to thoroughly think about what it will mean to take advantage of this lucrative offer. While it can come with some great perks, it can also come with the loss of your rights to sue your employer in the future. It’s best to seek legal counsel before signing a golden parachute contract so that you can fully understand what you are agreeing to.