May an employer fire an employee and then ask the employee to sign a waiver of claims or severance agreement?
Many employers will offer some form of severance payment to an employee who has been fired or laid off, but will make that payment contingent on the employee signing an agreement to release any potential claims he or she may have against the employer, such as for breach of contract or discrimination. Such agreements are generally legal, but are often enforceable only if the employer complies with certain requirements. For example, the employer must make clear just what potential claims the employee may be waiving in the agreement, such as by listing the various laws (for example, Title VII or the Americans with Disabilities Act) under which the employee will no longer be able to sue. The employer must also give the employee an opportunity to review and consider the agreement and to consult an attorney if he or she wishes to do so. In fact, some laws, such as the Age Discrimination in Employment Act, specifically require that the employer advise the employee to contact an attorney, and
Related Questions
- What if an employee or a trade union feels the employer is not following the terms of the collective agreement, or if there is a disagreement about the meaning of part of the collective agreement?
- Can the employee sue the employer for wrongful dismissal as well as file a claim for termination pay and severance pay?
- May an employer fire an employee and then ask the employee to sign a waiver of claims or severance agreement?
