Q. Under our company policy, employees who are terminated because of a reduction in force are entitled to severance pay. Can we require them to execute a release in order to receive severance pay?
A. Yes, if the policy specifically states that employees must execute a release in order to receive severance pay, then you can—and should—require employees to do so.
If your policy does not expressly require a release or is silent on the issue, then any release you obtain may be unenforceable for lack of consideration. In that case, in order to obtain an enforceable release, you’d have to offer something in addition to severance pay to which they are already entitled under your company’s policy.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Can you fire employee for threatening suicide?
- Employer statements to NASD can't be the basis for defamation lawsuits
- Remind managers: Base hiring only on job-related reasons
- Track your fair and equitable discipline to prove you don't discriminate