Q. Business has been slow and it doesn’t seem likely it will pickup in the foreseeable future. We’re going to have to let some employees go. I’ve heard some employers in our situation ask employees to sign agreements releasing the company from future employment-related claims. Should we get releases from the employees when we terminate them?
A. It depends. Do you think there’s a risk of a claim by any of the people being let go? Are you willing to defend a claim if one is asserted? If you want a release, are you willing to provide severance pay to obtain the release? Will asking for a release send a signal that you’re concerned about a claim being asserted?
This is a topic that requires careful analysis on an individual basis. You should consult with your attorney to determine the best course.
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