severence agreement

geg

We are a small manufacturing company starting a RIF. We have only a few managers with actual employment contracts, all are individual/different. I want to know if the following is enforcable by the manager:
"This is a Severence Agreement between "employee" and "company". It shall remain in effect for the duration of my employment with "company" or any new company formed through merger with or sale of "company". In the event that my employment with "company" is terminated, I will receive severence pay in the amount equal to fifty-two (52) weeks of salary current at the time of termination to be paid weekly upon termination. I will receive full payment of my # shares of "company" stock upon my termination of employment. The value of the stock payment will be no less than $$$ per share. "Company" will provide me with fifty-two (52) weeks of full coverage health insurance from the time of my termination".
Can we be held to this? There are no dates refering to duration of this agreement. It is signed by the CEO/GM. Would it still be effective if the manager quits?

bsa

x:o HOLY COW!!!! #-o

Gillian

Depends on what "terminated" means. Does it mean that the company is the moving party in the separation or that the employment just ends. You know who will argue each side. It gets to be decided the American way - in court.

Pork

Enforceable by the manager? Is he the one being considered for termination or is he the one wanting to break the contract or take care of one of his clan? A contract attorney is most important in this case, regardless. A merger pending means the merging company knows going in this might be a real expense that they would take on.

Theresa Gegen TX

I doubt the employee could enforce it if he quits (seems like a really weak argument that termination also means volentary termination in relation to this agreeement). But there is a possiblity which would depend on the way the court's in your state have interpreted these agreements in the past. But if he is terminated by the company in the RIF, the company would certainly be bound!!
Even if the company could prove that the person signing the agreement did not have any authority to do so, the person probably had apparent authority, or the employee could probably win on some type of reliance theory!!
Good Luck!