Having an employee sign a separation agreement doesn’t cover you completely.
If you offer a severance, a separation agreement and general release is essential to secure the release of employment-related claims.
Keep in mind that not all claims can be released by an employee, Including:
- Wage and hour claims
- Certain workers' compensation-related claims
- Family and Medical Leave Act (FMLA) claims (courts are split over this issue).
Additionally, an employer cannot bar an employee from filing a charge of discrimination (although it can prevent an employee from obtaining related monetary relief thereunder). Because of varying local/state employment laws, employers should be encouraged to seek outside counsel for separation agreement drafting and review.
A separation agreement should be clearly written and must comply with local, state, and federal law. Important factors must be considered when negotiating severance and drafting a separation agreement.
Modern Business Associates frequently deals with legal HR issues. As a Professional Employee Organization, our clients rely on us to help them effectively deal with these kinds of topics including designing legal processes for terminations and designing a separation agreement.
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