December 2, 2021

What Does A Severance Agreement Look Like

If you have a clear reason to let someone go and they do not pose a risk to the company, a departure agreement may not be appropriate. However, severance agreements are more popular if the employee in question has access to sensitive company information or is fired due to circumstances beyond their control. Here are the key points to consider when it comes to severance pay: If done correctly, your termination agreement should completely negate the possibility of your organization being sued on termination. However, to get them to sign the contract and make it legal, you have to offer something in exchange for their signature. This is called “consideration” and is usually a lump sum called severance pay.

About Bob Bergey

Bob has been driving motorcoaches since 2002, in every state east of the Mississippi and a few west, as well as the four southeastern-most provinces of Canada. In addition to driving, he's an avid photographer (and former professional), enjoys writing and technology.