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ARTICLE · 04 MARCH 2021

Severance Slip Ups – Some Critical Errors In Giving Out Severance Payments

Archer & Greiner P.C.
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In a world where layoffs and terminations are a possibility for any business, it is essential that employers understand some of the critical mistakes they could make when providing severance

United StatesEmployment and HR
Archer & Greiner
Archer & Greiner
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In a world where layoffs and terminations are a possibility for any business, it is essential that employers understand some of the critical mistakes they could make when providing severance payments to employees.

Here are some of the biggest ones we have seen and how to conquer them:

  1. Not having a written agreement with a release - Yes, there have been instances where an employer provides a severance payment and never required a written release in exchange. Remember, a severance payment, generally speaking, is not due or owing to at-will employees.  It is extra, unearned money.  For that reason, the company should require something in return from its employees and that is a general release of claims against the company.

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