Consulting With a Former Employer Post-Separation

10/13/2013 // Dallas, Texas, United States // Attorney Keith Clouse // Keith Clouse // (press release)

When employers and top executives part ways, they often do so on friendly terms. Sometimes it is advantageous for both the employer and the executive to enter into a consulting agreement that takes effect after the employment relationship terminates. The employer may need the executive’s services during the transition to a new management team or to bring a particular project to resolution. Being able to take advantage of the executive’s expertise and contacts can keep the company from losing valuable institutional knowledge. At the same time, the executive may desire additional income and stability while pursuing other employment options.

A consulting agreement can take many forms. Sometimes, an executive is paid simply to be available should the company have questions. This scheme is often used if the executive is subject to a non-compete agreement; the consulting time period usually ends when the non-compete terms expire. In other situations, the company may require the executive to report to the office for a set number of hours each week as a condition for payment. Sometimes these consulting agreements are used as a way to “sweeten” a standard separation package or to supplement pre-existing termination terms.

To learn more about negotiating consulting agreements, contact an employment lawyer in your area. This article is presented by the employment law attorneys at Clouse Dunn LLP. For inquiries, send an email to or call (214) 239-2705.

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