Q. Is there a law that requires a 45-day waiting period from the time employees are told they’ll be laid off until they receive the severance payment? My supervisor said it’s called a cooling-off period.
A. The law—the Older Workers Benefit Protection Act—says that there must be a 45-day period in which older workers (those 40 and older) involved in a group termination can review any agreement releasing the employer from liability for age discrimination claims. Otherwise, the agreement isn’t enforceable. After signing, the employee has seven days to revoke his or her acceptance.
An employee typically has to sign the release before receiving severance, and will not be paid until after the seven-day revocation period has passed.
A group termination occurs when two or more employees are terminated as part of the same “program,” such as a reduction in force. For an individual termination, the required time period is 21 days.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/12818/whats-this-i-hear-about-a-cooling-off-period-in-layoffs-involving-severance-pay "