Firing an employee can be a tricky thing especially when you’re firing a hot-headed potentially volatile employee. If you fire an employee they may end up suing you for some frivolous harassment or discrimination claim. The best way to protect yourself is to pay them a severance and have them sign a severance agreement. You pay them money and they waive all potential claims against you and your company. The sample severance agreement below is a comprehensive 13 page contract with all the bells and whistles including a comprehensive discussion about the general and specific claims the employee is waiving, and other restrictive post-employment provisions you may want to consider so that your employee doesn’t open up a competing business down the street from you. This contract can absolutely be shortened to accommodate your specific business’s needs. It’s a great form to use though, especially when you’re trying to understand your options for firing an employee and protecting your business.
BlogContractsEmploymentEmployee Severance Agreement: Non Compete, Waiver of All General and Specific Employment Related Claims,
March 8, 2023by Jeffrey Davis