Thomas D. Rees, a partner in the labor law practice at High Swartz LLP in Norristown, Pennsylvania, said separation agreements are «highly advisable» when an employee is fired for any reason without serious misconduct. «A separation agreement is absolutely necessary if the employer wants all rights, especially rights to discrimination, to be released,» he said. «It`s important to reframe your agreement on a particular state,» Rees agreed. For example, some states, such as New Jersey, have protection against age discrimination that goes beyond federal law. In this case, an employer may be obliged to include provisions that in other countries are only necessary for workers over the age of 40. Typically, the company offers a type of payment (often referred to as severance pay) in exchange for a waiver and release of rights. The agreement may offer the employee other advantageous conditions, for example.B. continuation of health care, neutral referral and services to find a new job.
In addition to the release of rights, the employer can also obtain commitments, such as. B the worker`s agreement not to recruit customers or other employees. Some separation agreements define released rights as arising from behaviour that took place either in the workplace or outside the workplace, whether or not they relate to employment. The authorization generally covers «known or unknown» claims, including claims that are only visible after the performance of the contract (provided that the conduct underlying the claim took place before performance). In short, separation agreements benefit the employer: another possibility is to limit the contract in time: if the employee does not accept your conditions within a set period, the contract will be automatically revoked. «In this way, it becomes clear that the offer will no longer be pending after the deadline expires,» Rees said. «The parties will be able to negotiate an agreement later, but the basis for negotiations will not be the employer`s initial offer.» At the end of the day, Widener said, «It`s really on a case-by-case basis and it depends on the facts and circumstances of the specific situation.» Employers, he says, should consult with their lawyers to define the appropriate action or strategy when a worker refuses to cooperate or sign the agreement.