Layoffs, Lawsuits and Severance Agreements
As if in counterpoint to our last post, about avoiding litigation through greater professionalism is managing workers, ABAJournal.com, in a post by Martha Neil, reports that workers laid off from failing investments banks are suing their former employer (“More Laid-Off Workers, More Work-Related Lawsuits”).
The post includes an observation that to protect themselves companies are requiring terminated employees to sign releases. Actually, that’s old news for major employers: as part of a severance agreement (with or without generous severance benefits), employers expect a release.
The “takeaway” here covers both sides of the equation: (1) smaller employers (more likely to be among our readers) should consider carefully thought-out severance agreements when laying off workers; and (2) corporate mid-to-senior-level professionals (also among our readers) should review their severance agreement with an attorney- - sometimes negotiations can improve them a little but, just as important, you should be aware of the rights you are signing away.
