An Overview Of The Elements That Make Up An Employees Termination ContractAn employee termination contract is similar to a contract of employment except that it specifically focuses on the rights and responsibilities of employer and employee upon the termination of employment. Most employers and employees have heard of and/or used a contract of employment. A contract of employment outlines the rights and responsibilities of both the employer and the employee when employment commences. A basic employee termination contract might specify that the leaving employee cannot start a company that will compete with the company they are leaving for a specific period of time. The contract should also include a paragraph specifying that the employee dismisses all claims, charges and disputes against the employer. This type of statement will help the employer in the event that the ex-employee attempts to sue them. The contract may not prevent the ex-employee from suing, but it will go a long way in helping the employer win the lawsuit. When signing an employee termination contract, the employee agrees to give up some or all rights to sue the employer. An employee termination contract may also specify that a leaving employee is not allowed to divulge trade secrets or other confidential information pertaining to the company or those affiliated with the company. Additional information and equipment, such as company files or computers, should be included in the contract as being surrendered to the company upon termination of employment. An employer may offer a severance pay or lump sum payment in exchange for the employee to sign the contract. Where that is the case, the amount and terms of the payment should also be included in the employee termination contract. An employee that leaves on good terms is much more likely to happily sign an employee termination contract as opposed to an employee whose employment was terminated due to behavior or work problems. However, termination of employment should always be followed by the employer asking the ex-employee if they are willing to sign an employee termination contract. Like all legal contracts, an employee termination contract should be signed willingly by the leaving employee and not forced upon them. An employee should be allowed to spend some time looking over and thinking about the contract and their decision. The employer should allow the option of an attorney able to look over the contract with the employee. This should be an attorney of the employee's choosing, of course. Some employees may want to negotiate the terms and conditions of the employee termination contract. This should also be allowed to a certain extent. An employer who offers these benefits to a leaving employee will have a much better chance of having the contract stand up in a court of law as being willingly signed rather than forced upon the employee. An employee leaving a company should carefully look over an employee termination contract with their attorney present before signing the contract. Be sure you understand all of the terms and conditions of the termination and negotiate any terms that you feel are unfair or not in your best interest. All legal contracts are serious matters and should be treated as such. |