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Is a signed release worthwhile?
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Is a signed release worthwhile?
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
We will be laying off a senior level employee (VP). He is in two protected classes. I believe that the termination is justified. We have already layed off 30% of the production staff, and the VP posit
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Forums » Topic Forums » Legal Forum » Is a signed release worthwhile?
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Is a signed release worthwhile?
posted at 6/30/1999 8:48 PM EDT
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Posts: 267
First: 6/29/1999 Last: 4/13/2010 |
We will be laying off a senior level employee (VP). He is in two protected classes. I believe that the termination is justified. We have already layed off 30% of the production staff, and the VP position is being eliminated with no replacement to be hired.
If we require him to sign a release, stating he will not bring action against the company relating to the termination of his employment, does this really offer us any protection? I believe that even if he brought a claim against us, the termination would be defensible for the reasons above. However we would like to eliminate the possibility of having to defend a claim period (the legal costs add up even if you never get to court). Any suggestions on how we can do this? |
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Is a signed release worthwhile?
posted at 6/30/1999 11:48 PM EDT
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Posts: 833
First: 6/11/1999 Last: 8/23/2001 |
It doesn't provide any protection unless you offer him something for giving up his rights to sue. You'd need to provide him with something in consideration of his agreeing no to sue.
Severance packages and agreements are tricky and require a carefully orchestrated time schedule with waiting periods at various steps. They are very worthwhile, but you should have it crafted by your attorney. |
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Is a signed release worthwhile?
posted at 6/30/1999 11:56 PM EDT
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Posts: 2217
First: 6/16/1999 Last: 12/13/2001 |
I routinely recommend clients consider whether to offer a terminated executive a severance package as part of a release and waiver of rights. Any such release should comply with the very techincal requirements of the Older Workers Benefit Protection Act. If your release is not supported by "consideration" (something of value over what the employee would have otherwise gotten), then it is not worth the papar on which it is printed. I, like Jim, recommend you consult with legal counsel. If you would like a referral, just drop me a line:
Matthew T. Miklave Epstein Becker & Green, P.C. 250 Park Avenue New York, New York 10177 (212) 351-4663 (212) 661-0989 (fax) MMiklave@ebglaw.com (e-mail) |
Forums » Topic Forums » Legal Forum » Is a signed release worthwhile?
