Severance / Separation of Employees / Wrongful Termination

In the discharge and discipline  of employees, traps for the unwary are plentiful.   Effective use of severance and separation packages avoids post-employment lawsuits, and can reduce unemployment taxes.  Our employment law team can assist you in preventing unwanted claims in court, including those from the EEOC, “at will” or “just cause” terminations, and unemployment claims.

EMPLOYER ACTION STEPS:

•  Document, document, document
• Do your homework but do not delay taking action.
•  Take measured steps, unless misconduct demands immediate termination.
•  Follow employee handbook procedures.
•  Use severance agreements to waive potential claims.
•  Ask a second employee to witness supervisor’s termination of problem employee.
• Use non-competition agreements to limit your business exposure;
• Download our published article: Employment Separation Agreements
• See Courtroom Success

Call (248) 643-9530 or email info@zeiglerlaw.com for a consultation.

FOR EMPLOYEES:

The worst-case scenario for employees is to lose your job, lose your income, have no severance package, with no unemployment compensation, and no ability to sue your employer for wrongful termination.  So, are you missing out on getting money from your employer?

Employees need to know: are you an “at will” or “just cause” employee?  Were you fired for misconduct, terminated for job performance, or laid off?  Are you eligible for unemployment benefits?  Are you eligible for COBRA or other benefits?  Do you have a claim for wrongful discharge?  Can you go to work for a competing employer without getting sued?

Does your employer have a standard policy on stepped discipline, severance pay, or termination benefits?   Is there an internal dispute resolution procedure?  Has it been waived?  Did you receive a severance package?  How do you evaluate it?  Is it fair?  Can you get more?

EMPLOYEE ACTION STEPS:

• Review employment application, employee handbook or contract for “at will” language
• Review employee handbook for progressive disciplinary policy
• Follow internal employee complaint or grievance procedures
• Is there a severance pay plan: e.g. 1 week of pay for each year of service?
• How were other employees treated when terminated?
• Is there a reduction in force, or a single person termination?
• Is there non-competition language in the agreement?  Is it too broad to be effective?
• Call (248) 643-9530 or email info@zeiglerlaw.com  for a consultation.
• Download our published article: Employment Separation Agreements

See Courtroom Success