Josh Viau’s article “The Double Edged Sword of
Severance Agreements” was featured on HR.BLR.com on
December 11, 2014.
Since the economic downturn, Human Resource professionals and
in-house employment counsel have used severance agreements with
departing employees to obtain peace of mind and predictability
regarding the associated costs of involuntary employee
separations.
While severance agreements and the accompanying consideration
can be valuable litigation avoidance tools, some employers have
learned the hard way that severance agreements are not always the
best course of action.
In the article, Josh examines the pros and cons of entering into
severance agreements with departing employees. The clear upside of
such agreements is the notion of a clean break—employer and
employee agree to part ways completely and forever, never again
having to deal with each other. On the downside, severance
agreements are not right for every employer and every
situation.
