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While it`s important to deliver severance pay in the best possible way, you should also consider your entire termination or RIF process to make sure you`re doing everything you can to deny the harsh feelings when you let someone go. Q: If the employee signs the termination agreement and takes the money, should I worry? You can`t expect the employee to sign and return severance pay immediately. Since the employee has a 21-day cooling-off period to verify the terms of the severance pay, you should not expect to receive a signature immediately. This letter represents the agreement between you and [your employer] (“the Company”) on the terms of your separation from the Company (hereinafter the “Contract”). The Agreement shall enter into force on the date referred to in paragraph 7. A valid and enforceable severance agreement, like any contract, requires appropriate consideration. In exchange for giving the employer something valuable – mainly a release of rights – the worker must receive something to which he is not otherwise entitled. Example 7: An employee who received extended severance pay in exchange for waiving her right to challenge her dismissal, then filed a complaint. In finding the validity of the waiver statement, the Tribunal found that, since the waiver clearly stated that it exempted all claims that they “have or may have had”, there was no need to waive any future rights that might arise after the waiver was signed. [20] Example 15: If an employer decides to eliminate 10% of its staff in a given establishment, the entire establishment is the decision-making unit and the employer must disclose the titles and age of all employees of the establishment who have been selected or not for dismissal.

However, if the employer has to cut 15 jobs and only takes into account the employees of its accounting department (and not accounting or distribution), then the accounting department is the unit of decision and the employer must disclose the title and age of all employees in the accounting department whose elimination positions have been selected and have not been selected. Example 4: An employee has been informed that his company is reduced and that he has 30 days to choose a voluntary or involuntary separation. The worker opted for voluntary separation in exchange for severance pay and supplementary pensions and signed a waiver statement that read: “Me. . . To exempt [my employer] from any claims I have or may have arising out of my employment or employment, dismissal or dismissal. The employee then filed a lawsuit, claiming that he had been fired because of his race and national origin.