Severance Provision Employment Agreement

Some employers offer severance pay, but do not use severance and release pay. At some level, this is a business decision, depending on the culture of the workplace. However, offering severance pay without authorization may not always be a proven method. Severance can help cushion the blow of a layoff or layoff. But let`s be honest: most companies offer it with more than the interests of employees. ”We live in a very contentious society, especially in the area of employment,” says Jonathan A. Segal, an labor law specialist at Duane Morris LLP in Philadelphia. ”Employers can buy peace by offering severance pay or other benefits in exchange for a [signed] release that states that the outgoing worker will not sue the company.