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When to pay consideration on Separation and Release Agreement

TeresaBlankTeresaBlank 26 Posts
in HR & Employment Law Vote Up0Vote Down
I am drafting a Separation and Release Agreement with a severance pay clause and am wondering if/when/how to pay the severance pay when the employee has to be given time to consider the agreement, then has a week to revoke. Should it be taken out, or what? Should a separate document be included with this information as well as informing them that they have a right to consult an attorney? Help.
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  • 4 Comments sorted by Votes Date Added
  • HR GuyHR Guy 14 Posts
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    Our release/severance agreements have all of that information included in the same document - the last paragraph refers to the consideration timeframe & seven day revocation period. We verbally inform exiting employees that we will hold the signed agreement for the seven days, then cut the severance check. We also include language referring to the right to consult an attorney in the same document. I'd be happy to send you the verbage we use, if you'd like.
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  • TeresaBlankTeresaBlank 26 Posts
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    Please do and thanks a lot. I guess I was trying to make it too complicated.
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  • Theresa Gegen TXTheresa Gegen TX 814 Posts
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    Teresa (Great name!)

    Be very careful about using a severance agreement as a form without having it reveiwed by your local attorney. That other company's severance agreement might be perfect, but it might not work in your state or, as I have seen my clients do many times, they use an old severance agreement as a form for a different employee with different facts, and it really doesn't apply.

    So I would suggest that you run it by your legal department before adopting it as the "FORM".

    Good Luck!
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  • HR GuyHR Guy 14 Posts
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    The other Teresa is absolutely right. Our in-house legal department drafted the forms we use now and we do use different forms for different states, over 40 vs. under 40, etc. Your attorneys should definitely review/adjust this before you use it. Post your e-mail & I'll send you a sample agreement.
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