If you’re laying off or firing employees, chances are you’re concerned about being sued. After all, an ex-employee is often an unhappy employee. Besides consulting an attorney to make sure your processes for laying off and firing employees are legally sound, it might also be wise to offer each ex-employee a severance agreement.
If you’re not required to offer a severance package when laying off and firing employees, you may still want to. For one thing, it can ward off wrongful termination suits and other claims that an ex-employee failed to bring while on the job. It additionally lays out exactly what is expected of you and an ex-employee such that there is no question about parting pay, insurance benefits, or pensions.
In addition to legal protection, think of severance agreements as an ex-employee handbook. If you follow the “rules” it contains, you probably won’t get sued.
Related Resources:
- Ending the Employer-Employee Relationship (FindLaw)
- Termination: Tools and Resources (FindLaw)
- Employment Contracts and Severance Agreements: The Devil is in the Details (Provided by Quarles & Brady LLP)
- Sample Severance Agreement and General Release (Provided by CyberShop International Inc. and Edward Mufson)
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