SEVERANCE PAY PLAN & RELEASE
Information & Benefits:
No law requires severance pay. Generally, only larger companies offer substantial severance packages to highly compensated employees to reduce the possibility of expensive lawsuits. Nevertheless (except in cases where employees are terminated for serious misconduct), many smaller sized employers may want to offer severance packages to long-term employees in order to soften the blow of being fired and reduce the possibility of future litigation. But treat your employees equally. If you are evenhanded and consistent in paying severance, you are less likely to face claims of discrimination
Many employers pay a set amount -- a week or two of salary -- for every year of employment. Some employers offer to pay for continuation of insurance coverage for a period of time after an employee is fired. An employer may offer counseling on career goals and job skills, tips on resume writing, leads for potential jobs, practice interview sessions and help in negotiating with potential employers.
Larger severance plans should have an administrator. This streamlines the payment process and, in the case of dispute over benefits, provides the employee an immediate access to a company representative.
Waiver and Release
Whenever a severance plan is offered, the employer should receive from the employee a waiver and release. In the waiver, the employee warrants that they waive any claims for employment or re-employment by the Company, and agree to release and forever discharge the Company and their respective past and present officers, directors, shareholders, employees and agents from any and all claims and causes of action, known or unknown, arising out of or relating to his/her employment with the Company, including, but not limited to, wrongful discharge, breach of contract, tort, fraud, the Civil Rights Acts, Age Discrimination in Employment Act, Employee Retirement Income Security Act, Americans with Disabilities Act, or any other federal, state or local legislation or common law relating to employment or discrimination in employment or otherwise.
Mediation and Arbitration
Mediation and Arbitration should always specify a convenient location (preferably, in the same county where they run their business). Mediation is a non-binding way to settle the dispute quickly and amicably. If unable to settle in mediation, arbitration is first option available. Arbitration is the preferred alternative to litigation because of speed, cost, and ability to maintain low profile (no info is publicly available).
No Modification or Waiver
No modifications except those specifically agreed upon by the parties in writing. Any waiver of a term or provision will not act as a waiver of any other provision.
This agreement constitutes the entire agreement of the parties and may be modified only in writing executed by both parties.
Notices should always list the current and best addresses where each party may contact the other for whatever reason.
Spiegel & Utrera, P.A. : Affordable Agreements. Custom-Fit Contracts.
Why do I need a Legal Contract or Agreement?
1840 Coral Way
New York City
1 Maiden Lane
642 Broad St., Suite 1B
8939 S Sepulveda Blvd.
9 East Loockerman Street
2545 Chandler Avenue
Continental Office Plaza, Suite L12
General Counsel Club®
Unlimited Legal & Business Advice
STARTING A BUSINESS
There are many benefits to starting a business and incorporating. Some of the benefits of starting a business include protection of your personal assets, ease of raising capital, gain anonymity, available tax benefits and more!
Copyright © 2022 Spiegel & Utrera, P. A. All Rights Reserved