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How to Draft a Severance Agreement

Employment lawyer in Los AngelesSometimes, offering a severance agreement is the most effective way of making employee termination easier. Firing an employee is never easy, and offering a severance agreement can help reduce the risk of litigation in the future.

Very often, employers use severance packages as a way of getting employees to promise the company that they will not sue the company in the future for additional benefits. Once the agreement is signed, the company will offer its severance package to the employee. There are certain key elements to a severance agreement.

Be very clear to the employee about the kind of rights that he’s giving up as part of the severance agreement, and in return for a severance package. For instance, you must make it clear to the employee that he is giving up all rights to sue the company for additional benefits in the future. He agrees to give up any right to any claims that are related to his employment relationship with your company. The language in the agreement must be specific enough, and stringent enough to avoid any kind of claim that the employee might like to claim in the future.

A severance package must also give the employee something in exchange for giving up all of his rights. When you ask an employee to release your company from any litigation or potential claims in the future, you must offer a severance package that typically involves a sum of money.

Do not force the employee to sign the perseverance agreement. Offer the agreement, and give him time to decide whether he wants to sign it. Employment lawyers in Los Angeles often find that courts do not look very kindly on employers who force perseverance agreements and packages on employees. Don’t threaten your employee, and don’t use any other coercive techniques.

For older workers, the agreement will have to comply with a federal law that applies to older workers. In such cases, the person must be given a much lengthier period of time in order to decide whether he wants to sign the agreement. Discuss severance agreements with an Employment lawyer in Los Angeles.

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