Severance and release agreement. Your supervisor hands you a severance agreement and release and your mind is flooded with questions about your severance package. A release by the employee of all legal claims against the employer. After the shock here are ten things you should consider when reviewing a severance package agreement and managing the transition from one company to your next opportunity. Employers usually want severance agreements to get one concession in particular.
The following example illustrates one way in which the required owbpa information could be presented to employees as part of a waiver agreement and is not intended to suggest that employers must follow this format. I heard that my employer has a severance plan. Severance agreement and severance pay faqs. Is there a law that requires employers to provide severance pay.
A severance agreement by any name is a contract that specifies the terms of your employment termination such as during a layoff. If you are a small business owner who needs to fire someone you may be wondering if you need to provide severance pay and thus have a severance agreement. The release of claims legal document generally lays out the prior terms of employment and an agreement to negate them.