Indemnification Clause

Definition

A legal protection in severance agreements where the company is shielded from lawsuits by employees in exchange for financial consideration, one-sided risk management.

Example Usage

The severance agreement included an indemnification clause requiring her to waive all rights to sue the company for any employment-related claims.

Origin

Legal terminology adapted to HR employment agreements.

Fun Fact

Indemnification clauses often seem reasonable in the employment offer but become very relevant when you need to sue your former employer.

Source: Employment law terminology

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