Providing your employees severance pay is a positive way to break the employee employer relationship, limit liability and provide your employee with a fresh start. Our article on Severance agreements: What Is My Signature Worth Negotiating Employee Severance Pay Package Agreements, provides an overview of the basic legal issues involved with the drafting of employee… Read More →
Just read Separation Agreements: Breaking Up Is Hard To Do by Daniel R. Brice and Jonathan M. Cerrito the Tax and ERISA compliance pitfalls of servance agreements.
What is the consideration for the severance pay agreement? If the employee is already entitled to everything that is in the severance pay agreement there is no consideration and there is no reason for a terminated employee to sign the release of all claims. If the employer wants the release agreement to be valid there… Read More →
Should you sign the release and waiver of all claims or not? Employers who offer a severance agreement with a release of all claims, generally want to get the release signed. The reason for this is that the release language in a severance agreement concludes the employment relationship and makes sure there is not going… Read More →