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Providing Severance Packages to Avoid Being Sued for Wrongful Termination

By Edited Aug 3, 2016 0 0

Firing an employee can be difficult for you, especially in the presence of an employment contract. You may be sued for wrongful termination if you remove him from the workforce eventhough the contract states that he should still be employed for a specific period of time.

Giving him a severance package may be your only way to avoid being involved in a court battle. You can ask the employee to sign an agreement, which states that he will waive his right to file a wrongful termination case against you in exchange for certain benefits.

Your employee may be tempted to accept the severance package once he finds out that the following benefits are included in it:

  • Extended insurance benefits- You can allow your employee to continue receiving his health or disability benefits for a few months after he leaves the company. The Consolidated Omnibus Budget Reconciliation Act (COBRA) may require you to allow the employee to continue his coverage, but you may choose if you want to shoulder the insurance's premiums.
  • References- You can make a letter of recommendation which the employee can use when applying to other companies.
  • Outplacement services- Outplacement programs can help your worker find another job by teaching him how to make an impressive resume and how to answer during interviews.

Your employee will have a big decision to make, so it is better if you will give him enough time to think about his options. Here are the following tips on how to you can deal with him:

  • Let the employee decide for himself- Your worker's decision whether he will sign the agreement should be voluntary. The agreement may be considered illegal or void if the court finds out that you forced him to sign it.
  • Consider the employee's age- If the worker whom you want to fire is already 40-years-old or above, remember that he is covered by the Older Workers Benefits Protection Act (OWBPA). You should give him more time to review the details that are included in the agreement and allow him to change his mind for a certain period of time after he signs it.
  • Prepare to negotiate- Your employee may ask for benefits that are not included in the severance package. It is better if you will give in to his demands, unless they will already cause financial problems to the company.

Before you offer a severance package to your employee, you should first consult a Los Angeles employment attorney. This expert will make sure that the agreement will not violate the rights of your employee and expose you to any kind of liability.

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