Severance Packages
Employers will sometimes offer severance packages to terminated employees. These packages most often include some small amount of severance pay. But in order to receive even the small amount of pay offered, the severed employee is typically required to execute a general release and waiver of potential claims against the employer.
Such releases and waivers may be used by employers to indemnify themselves, particularly in cases where a termination decision entails exposure to litigation. For this reason laws require specific language and conditions to apply to releases of certain claims obtained in exchange for severance pay. For example, in any case where an employer seeks to obtain a release of an employee's potential federal age discrimination claim, the employer must provide additional time for the employee to consider its severance offer, must provide the employee time to revoke acceptance of the offer, and must particularly advise the employee to consult with an employment attorney about the severance offer and release of claims, among other requirements.
Employees who receive a severance package from their employer should consult an employment attorney to review its terms and conditions, prior to signing it. Employees who receive a severance package from their employer that specifically advises them to consult with an attorney should do so without delay.
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Employers will sometimes offer severance packages to terminated employees. These packages most often include some small amount of severance pay. But in order to receive even the small amount of pay offered, the severed employee is typically required to execute a general release and waiver of potential claims against the employer.
Such releases and waivers may be used by employers to indemnify themselves, particularly in cases where a termination decision entails exposure to litigation. For this reason laws require specific language and conditions to apply to releases of certain claims obtained in exchange for severance pay. For example, in any case where an employer seeks to obtain a release of an employee's potential federal age discrimination claim, the employer must provide additional time for the employee to consider its severance offer, must provide the employee time to revoke acceptance of the offer, and must particularly advise the employee to consult with an employment attorney about the severance offer and release of claims, among other requirements.
Employees who receive a severance package from their employer should consult an employment attorney to review its terms and conditions, prior to signing it. Employees who receive a severance package from their employer that specifically advises them to consult with an attorney should do so without delay.
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