Company Separation Agreements

While you need to pay attention to all dismissals and separation agreements, you need to take extra precautions with members of protected classes, which means they are protected by law from discrimination based on race, skin color, religion, national origin, gender and age – and in many places sexual orientation. They must put forward special considerations for workers over the age of 40 covered by the Law on Age Discrimination in Employment and the Law on the Protection of Older Workers. Older workers must have a maximum of 21 days to review the release of rights in relation to age and another seven days after signing to revoke their agreement. You should also advise the employee to consult a lawyer if they wish. Typical issues that need to be addressed are: if a company decides to terminate a position, it will likely want the employee to sign a separation agreement. This document describes the conditions for the dismissal of the worker in a way that I hope is a win-win situation for employers and workers. Consider this a formal way of explaining that both parties consider termination to be fair. Separation agreements can also be called “cancellation agreements”, “release of rights at work” and “severance pay”. Under any name, this document is not required by law, but a company will use it if it wants to keep the company`s information confidential or protect itself from possible legal problems. Disclosure may also relate to pending proceedings, with indication of the court or other jurisdiction, and the list of the case number or other identifying information. The separation agreement may require the worker to withdraw or dismiss the charge “with prejudice,” that is, without the right to postpone it later.

In order to avoid any risk of litigation, many companies go beyond the requirement for documentation of an employee`s poor performance or inappropriate behavior before cutting the cord: they push the employee to sign a separation agreement that documents their obligations to the company after their exit in exchange for an agreed severance pay. . . .