Reducing Staff In A Down Economy: Handling Terminations And Using Separation Agreements
- Topics:
- Termination
- Source:
- Morse, Barnes-Brown & Pendleton
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Overview: Handling terminations carefully is always important, but is even more so in an economic downturn due to the increased risk of former employees bringing legal claims. Each situation should be reviewed carefully to ensure that the risk of claims and the potential exposure to liability is minimized. Steps may need to be taken before the termination or layoff is implemented. Whether it makes sense to offer a terminated employee a severance package in return for a release of claims depends on a number of employer specific factors, such as employer policy, practice and employee relations philosophy. Providing severance in exchange for a release can be a worthwhile investment, as the amount of severance is often insignificant compared to the cost of defending an employee claim.
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Format: HTML | Date: May 2008 | Pages: 7
