45 Days To Consider Severance Agreement

If your employer decides to terminate your job, you can obtain a termination agreement that requires you to waive your right to file a termination action on the basis of age, race, sex, disability and other forms of discrimination. While most signed waivers are enforceable if they meet certain contractual principles and legal requirements, an employer cannot legally limit your right to testify, attend or participate in an EEOC investigation, hearing or procedure, or prevent you from filing a charge of discrimination with the Agency. Nor can an employer legally require you to return the money or benefits they have given you in exchange for your entitlements when you collect a tax. While this document is not intended to cover all the problems that arise when your employer informs you that you are made redundant or fired, the following checklist can help you decide whether or not you sign a waiver. No no. Since the provisions of severance agreements designed to prevent employees from submitting a tax to the EEOC or from participating in an investigation, hearing or procedure are not applicable (see question 3 above), you may not be required to return your severance pay – or any other consideration – before a tax is deposited. [13] One way or another, you have seven days to revoke your settlement offer, even after you sign. Example 8: A staff member who was informed that his dismissal was the result of a “reorganization” signed a waiver against severance pay. After hiring a younger person to do his old job, he filed an age discrimination complaint. The company then changed its position, stating that the real reason for the employee`s dismissal was his poor performance. The employee submitted that his waiver for fraud was not valid and that if he had known that he was being dismissed for allegedly poor benefits, he had suspicions of age discrimination and would not have signed the waiver.

The Tribunal found that the fraud was sufficient grounds to find the waiver invalid. [23] Your employer has therefore offered you a severance contract. That`s good news! Or, if that`s not good news, it`s at least a glimmer of money in a bad situation. An offer of severance pay means that your former employer is ready to ease your unemployment while you are looking for a new job. Under the Federal Older Worker`s Benefit Protection Act, Congress has attempted to protect older workers who have been offered severance pay to leave the workplace. The Act provides that older workers (over the age of 40) have at least 21 days to review severance agreements and then an additional 7 days to revoke them.