SEVERANCE REPAYMENT Clause Samples

The Severance Repayment clause requires an employee to return severance payments under certain conditions, typically if they breach specific terms of their severance agreement or re-employment occurs within a defined period. For example, if an employee receives a severance package but later violates a non-compete clause or is rehired by the company soon after departure, they may be obligated to repay all or part of the severance amount. This clause primarily serves to protect the employer’s interests by ensuring that severance is only retained when the employee complies with agreed-upon post-employment obligations.