The other place where you might come across a no-go clause is in a separation agreement – a document you may have to sign if you are fired, fired or abandoned on bad terms. You may have heard a non-disparance agreement under the term gag clause in a contract. While these clauses can and will be used in comparison cases, recent federal laws prohibit their use when entering into agreements with consumers. Recently, a business lawyer in Dallas, Texas, sued a couple after posting a misrepres shot on Yelp of an animal sitting company. They were prosecuted for violating a non-disparity clause. The company wanted $1 million in damages for its reputation and loss of business due to misvaluation. Later, when the accused criticized Freelife`s directives and products on his own site, he was prosecuted in part for violating the non-disappearance agreement, which was part of the hypothesis. The court found that the agreement was understandable and ruled against the defendant. A possible red flag to be paid attention: “The non-disappearance agreement should only cover behaviour from the day of the signing. It must clearly rule out everything that has happened before – because an employee may have already torn up his employer to 15 people,” says Michael Elkins, an expert on labour and labour law and founder of MLE Law. Clarify with your employer or an employment law specialist to make sure the agreement only covers what you do after you sign it and nothing you`ve ever done, he says. As you can see, approving a non-disappearance clause in a contract can backfire if you say something that might denigrate the other party involved. When you sign a transaction contract, you often see a paragraph towards the end that says “no denigration.” This means that both parties who sign the document agree never to denigrate the other.
This is a common provision that is included in most settlement contracts. While your lawyer might say there is nothing to fear or you might think there is no way to impose it, could you be wrong. Non-denigration agreements can be confusing and the circumstances under which you are asked to sign one may be difficult. But knowing what your company really wants from you – and what you need to keep in mind before you sign – can help you make a decision that will allow you to protect yourself and ultimately work on exciting new opportunities. “When an employee is hired, it`s implied not to talk about the company while you`re there because they could fire you,” Granovsky says. “But if someone leaves, maybe they have bad feelings about their former employer, [and] like piracy are going to get them arrested?” he adds. “One thing employers are trying to do is put this disparagement clause in a severance agreement.” In other words, companies make the signing of the non-disappearing clause a precondition for obtaining your severance pay and/or benefits. The consequences of violating a non-disappearance agreement are primarily financial. Depending on the language of the agreement, you may be on the hook to repay all or part of your severance pay if the non-disappearance condition was a condition for you to receive this payment.