Severance Agreements

When employers offer severance pay for workers in order to buy peace, employers should be wary of common pitfalls. As more and more employers prepare their own release agreements based on an earlier model, we have seen that some problems “stumble” employers. But before we talk about the six pitfalls, first the rhetorical question. An experienced lawyer is advised to check the discipline and dismissal before it is implemented. Even the most prudent employer will find themselves in situations where their management will not effectively document their discipline or dismissal and an employee will file a complaint or complaint for dismissal. In these situations, an employment lawyer can review the file and advise the employer on how to handle the situation and help negotiate a termination agreement to avoid costly and disruptive litigation. Through a thoughtful and collaborative approach to severance policy development, HR experts can take care of their outgoing employees while minimizing the company`s legal risk, helping to keep the peace for all. Rita Zeidner is a free writer in Falls Church, Virginia. Your severance pay agreement should be a living document that you adapt all the time. If laws change, which they often do, you need to make sure you`re always compliant and up-to-date.

Here, too, work closely with your legal team to make sure you`ve covered everything. If you create a termination agreement and package, you need to make sure that you comply with all local, state, and federal laws. Rely heavily on your lawyer to ensure that all of these aspects are covered. Conventional wisdom suggests that if the employer offers severance pay, it should receive in return a promise not to take legal action. (The benefits of an unlocking agreement may include other commitments, for example. B an agreement for future cooperation or non-competition or advertising for customers and employees.) If an employer does not receive this promise not to take legal action and is then prosecuted, he tends to regret the decision to effectively finance the former employee`s appeal with the severance pay that was made available “free of charge and clearly”. What everyone knows about severance packages is that they often contain a lump sum payment, usually based on employees` salaries.