postemployment

Postemployment refers to the period after the termination of an employment relationship, during which certain rights, obligations, or programs may continue to apply to either the former employee or the employer. It encompasses benefits that accrue upon leaving and restrictions that bind former employees.

Postemployment benefits are financial or non-financial benefits provided by an employer or through employer-sponsored plans. Common examples include retirement pensions, health-insurance continuation, life insurance, accrued paid time off, severance pay, and early-retirement incentives. These benefits may be funded through defined benefit or defined contribution plans and may be subject to vesting, eligibility rules, and plan terms.

Postemployment restrictions are covenants or obligations that survive the end of employment. Non-compete clauses restrict working in a competing business for a defined period within a geographic area; non-solicitation prevents recruiting the employer's customers or staff. Confidentiality and invention-assignment obligations protect proprietary information. Some arrangements also include a garden leave period during which the employee remains paid but does not work to protect business interests.

Legal frameworks and enforcement vary by jurisdiction. Some restrictions are limited or prohibited, while others are enforceable if reasonable in scope and duration. Employers may offer transitional assistance programs for departing staff. In accounting, postemployment benefits may be recognized as liabilities under relevant standards, with "other post-employment benefits" (OPEB) used to describe certain non-pension health and welfare benefits.

Understanding postemployment terms helps organizations and individuals navigate transitions, risks, and compensation.