July 2, 2014
Authored by: Bill Wortel and benefitsbclp
Separation agreements almost always contain release provisions whereby one or both parties agree to waive claims that they may have against the other party; when the employee releases claims, he or she typically gains compensation or a benefit that he or she is not already entitled to receive. In a world in which every terminated employee is a potential plaintiff, employers should have a good grasp on how to draft a valid and enforceable release in a separation agreement. Here are five tips every employer should consider when drafting this type of a release.
Tip No. 1: Offer Valid Consideration
In order to have a valid and enforceable release agreement, the employer must provide the employee with payments or benefits the employee is otherwise not entitled to receive. Therefore,