Benefits of Offering a Severance Contact to Departing Employees
A Philadelphia employment contract lawyer provides assistance to companies that want to protect themselves from possible risks that can arise within the employer/employee relationship. If a company hires a worker, there is the potential that worker could turn around and use confidential company info to benefit competitors or to start his or her own business. An employee who has been hired by an organization could also potentially file a lawsuit against the company for various violations of anti-discrimination and worker protection laws.
Understanding the possible risks of hiring workers is essential at all phases of the employment relationship, but the risk can be greatest when an employee is let go from his or her job. At this time, an employer may wish to think seriously about offering severance pay and asking the employee to sign a severance contract or an exit agreement. An experienced Philadelphia employment contract lawyer at Curley & Rothman can provide assistance to employers who are parting ways with any staff members and who want to make certain that their separation from an employees does not put the company at risk.
Benefits of Offering a Severance Contact When an Employee Leaves
When an employee leaves your company, you may consider offering severance pay in exchange for an employee signing a severance contract or exit agreement. The severance pay could be a benefit that the employee is provided in order to create a legally valid and binding contract wherein the employee agrees to certain important contractual terms.
Severance contracts routinely require employees to waive the right to file a wrongful termination claim, as well as to file certain other types of civil actions against a company. Any business, even one which has tried to do everything right, could possibly be faced with a lawsuit if an employee is fired or leaves the company under contentious circumstances. Even if you can ultimately prevail in the lawsuit, the costs of the case and damage to your brand could be substantial. You can make sure that your business is not vulnerable to this by getting the employee to sign an agreement promising not to sue in exchange for the severance pay.
While there are some limits on the rights which an employee can waive in a severance agreement, the signed contract can help to protect your company from many different kinds of litigation.
Making Smart Choices When Terminating an Employee
When terminating an employee, offering severance pay and getting the employee to sign a severance contract can be a good way to avoid short term and long term problems. However, you also need to consider whether the employee could present a continuing threat to your organization in any way.
While you may be able to ensure an employee waives certain rights to sue under a severance contract, there are limits on the waivers that can be included under the law so you may still be vulnerable for certain company actions. You still need to follow the letter of the law when it comes to things like providing last payments to an employee and ensuring that any waivers of rights are knowing and voluntary.
You should also make certain the employee you have let go does not present a threat to your organization in other ways. For example, consider whether there is the potential the employee could share trade secrets with a competitor. If you worry about long-term problems that a departing employee could cause, you should talk with a Philadelphia employment lawyer to find out what options, if any, you have under the law for keeping your business interest secure.
Getting Help from a Philadelphia Employment Contract Lawyer
Curley & Rothman, LLC assists your company when bringing an employee on board to make certain you enter into the right type of employment arrangement and to ensure you get the employee to sign contracts as needed to protect your interests. We can also provide you with assistance in protecting your company from possible lawsuits or other problems when the employee leaves. This includes offering advice on severance pay and contracts, drafting effective and enforceable agreements, and assisting you in responding to problems.
To find out more about the ways in which a Philadelphia employment lawyer at Curley & Rothman, LLC an assist you, give us a call today at 610-834-8819 or contact us today to schedule your consultation and learn more about how we can help with your case.