As the job market becomes increasingly competitive, more and more employers are offering employment agreements to potential employees. These agreements outline the terms of employment, including salary, benefits, and job responsibilities. However, one aspect that is often overlooked is the survival clause.
A survival clause is a provision in an employment agreement that outlines what happens to the agreement if one of the parties dies or becomes incapacitated. It ensures that the terms of the agreement continue to apply even after the death or incapacity of one of the parties. This clause can be particularly important in the case of a small business owner or a key executive.
In many cases, the survival clause will specify that the agreement will continue in force and effect for a certain period of time after the death or incapacitation of one of the parties. This can be anywhere from a few months to a few years, depending on the specific circumstances.
In addition to ensuring that the terms of the agreement continue to apply, a survival clause can also protect the interests of the surviving party. For example, if an employer dies, the survival clause might specify that the employee will receive a certain amount of severance pay or other benefits. This can provide some financial security for the employee and their family after the loss of their employer.
Employment agreements with survival clauses can also provide some peace of mind for both parties. By including a survival clause, the parties can rest assured that their agreement will be enforced even if one of them is no longer able to fulfill their obligations. This can help to minimize uncertainty and ensure that everyone is on the same page from the beginning.
If you are considering entering into an employment agreement, it is important to pay attention to the survival clause. Make sure that it is included in the agreement and that it clearly outlines what will happen in the event of death or incapacitation. Consult with an experienced attorney if you have any questions or concerns about the legal implications of the clause.
In conclusion, a survival clause is an important part of any employment agreement. It can provide financial security, peace of mind, and ensure that the terms of the agreement continue to apply even in the event of unforeseen circumstances. Make sure that you carefully review and understand the survival clause in your employment agreement to ensure that your interests are protected.