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Severance Agreement

MoriaMoria 78 Posts
in HR & Employment Law Vote Up0Vote Down
Sorry to impose on you all so early in the week. I have been directed by our CEO and Board that we have to terminate one of our executives, if possible today. We have taken preliminary steps in documenting lack of performance. A couple of bells ringing are that the executive is a female, over forty, and well versed in labor law. Colorado is an at-will state, but I want to make sure this doesn't come back to bite us. What a Monday!

We want to offer her a severance, including 3 - 6 months of pay. Do you also offer health benefits. Pay in one lump sum?

Would any of you that have done this in the past have a severance agreement that addresses a "covenant not to sue". If so please email me at [email]mrobinson@crowcanyon.org[/email].

Thank you in advance for your much needed help.

Moria

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Comments

  • 2 Comments sorted by Votes Date Added
  • LindaSLindaS 1,510 Posts
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    Regarding the severance agreement - we typically pay the severance as part of our regular payroll so they continue to receive "paychecks" for a period of time. In addition, we maintain their health insurance for that same period of time.
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  • JezJez 28 Posts
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    We offer benefits continuation by placing the ee on COBRA, then paying the COBRA bill for a defined period of time. We pay the sevarance in portions broken out bi-weekly so and if an ee is re-employed by our company, severance payments cease. (I don't know if this would be necessary in you executive's case). You'll also need a good release agreement. I will forward you a draft via e-mail, but you'd be best off running it by your attorney.

    Good luck!
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