0:00

The employment agreement should address

0:03

what happens upon termination of employment.

0:05

This would include addressing if there are any repayment

0:08

obligations that the parties have to one another.

0:12

For example, if a physician has been recruited

0:15

and received a signing bonus or relocation extensions

0:18

or education stipends,

0:20

the employment agreement should address

0:22

what obligation the employee has

0:24

to actually repay any portion of those advanced funds,

0:28

and they should address those in very detailed terms.

0:31

Um, from the employee's perspective,

0:33

if you're gonna have a particular repayment obligation,

0:37

you want to make sure that it's prorated based on the number

0:40

of months that you've completed of service so

0:43

that the repayment obligation goes down

0:46

over the course of time.

0:48

We also wanna make clear that you know,

0:50

if it's an event such as death disability,

0:53

if you're terminated without cause,

0:56

if there are circumstances like we've discussed

0:59

before about the employer losing a hospital contract

1:03

or the employer deter, making a determination

1:05

that there's no economic feasibility

1:08

to maintaining the relationship, you wanna push

1:10

for the repayment obligations to go away

1:13

and not be something that the employee has an obligation

1:17

to address upon the termination of employment.

1:19

Typically, we want to focus on repayment obligations, tying

1:23

to the employee electing

1:26

to terminate the relationship without cause,

1:28

or the employee's relationship being terminated for cause,

1:31

events and behavior that the physician

1:34

employee can control him or herself.

1:36

Those are the reasons that we really want there to be,

1:39

if there's gonna be a repayment obligation,

1:41

those are the circumstances we want it to apply.

1:44

There will also be provisions that

1:46

survive the employment agreements, termination, for example.

1:50

The confidentiality terms

1:51

of the employment agreement will oftentimes continue.

1:55

There may be restrictive covenants including non-competes,

1:58

non-solicitation and non-disparagement provisions

2:02

that continue post-termination.

2:04

And finally, we've talked about indemnification,

2:06

but those are obligations

2:07

that one would typically see survive the expiration

2:10

or termination of the employment relationship.

2:13

The employee needs to understand

2:14

that once the employment agreement terminates, he

2:18

or she needs to know what they have to do to continue

2:21

to comply with the terms of the employment agreement.