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hri_Admin asked 4 years ago
We are a not-for-profit. One of our poor performing managers with just over one year of service met with their boss yesterday and said that they are no longer feeling engaged and they want to quit but can't for financial reasons. They said they can't be without a salary while job hunting. They asked if we can pay them out for their resignation. Apparently the employee is quite toxic and we want to enable the exit ASAP. We were thinking of telling then that we have considered their predicament and that if they send us their voluntary letter of resignation this week, we will arrange for her to have a 4-week taxable lump sum "retirement allowance" paid to her. Is there anything I should be mindful of before I proceed?
1 Answers
Glenn Demby answered 4 years ago
GET A LAWYER!!! You need someone to draft a carefully worded release clearly setting out the terms of the severance arrangement and ensure it's properly executed. Make sure the employees properly release you from all claims. Urge the employees to carefully read the document and have it reviewed by their own lawyer. Again, PLEASE don't try to be a hero and do this on your own. I've seen countless cases where employers have been sued--often successfully--by an employee with whom they thought they had a legally binding settlement and release agreement. So many ways to void these things, including what's called "unconscionability." So, no foolin' around. Get a lawyer to help you with this. Glenn
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