Must we offer severance pay?

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in Firing,Human Resources

Q. We just let go of a new hire after only three months on the job because her performance was not up to our standards. Do we have to provide two weeks’ notice or severance pay?

A. No. There is no federal or Colorado law that requires notice or severance pay. If you have an agreement with the employee to do that, Colorado law probably can be used to enforce it, but Colorado law does not create any such obligation on its own.

If you choose to offer severance pay, typically you should receive a waiver-and-release agreement in exchange.

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