Severance Pay

Eva Armas · May 2003

Can we ask an employee about to be terminated to sign a statement that he won't sue the company (Washington, D.C.) in exchange for a severance pay? Thank you for your advice.

Eva

franfields · May 2003

Yes, you can do that. It is called a release. You might want to consult an attorney if there are issues.

scantey · May 2003

Yes, you can do that but you should also allow the employee time to review it and not let them sign it right there. We usually give about 2-4 weeks to let them look it over. That way they can not say that they signed it under pressure. Also make sure you have someone from legal to look it over, they can get very clever when it comes to interpreting the wording...

Eva Armas · May 2003

Thank you very much for your advice. I'm learning a lot from your expertise.

Blessings, Eva Armas

Rockie · May 2003

You have to be very careful if you are offering a severance to someone in a protected age group. They must be given 21 days to consider the agreement and then another 7 days after they sign the agreement.

If they are not in a protected group, they you have a little leeway, but the court will not recognize any type of "covenant not to sue" if there is a case of discrmination, etc.

If you are in doubt, you should contact legal counsel, especially in the "over 40" age group. They will be able to assist you in drafting a proper agreement.

Eva Armas · May 2003

I work for a non-profit/religious organization. We do not have a lawyer. By the way, the employee is a clergy and a lawyer to boot!

Eva

Elliot Shaller DC · May 2003

As the other replies have indicated, the answer is definitely yes, but you need to procede with caution so that it is clear that the agreement is "voluntary" and the employee fully understands that he is forever giving up his right to sue by accepting the severance pay. Special precuations are in order if the employee is age 40 or over. There are various provisions that may be added to the agreement which would help ensure that these precautions are followed.

For your information, I am the Editor of the M.Lee Smith Publishers' Washington, D.C. Employment Law Letter. Feel free to contact me if you would like more information. Here is my contact information.

Elliot H. Shaller
Krukowski & Costello, P.C.
1875 Connecticut Avenue, N.W., Suite 524
Washignton, D.C. 20009
tel: 202-898-1031
fax: 202-898-1311
e-mail: [email]ehs@kclegaldc.com[/email]

web site: [url]www.krukowski.com[/url].

Severance Pay

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