Finally, employers must assess competing legal and business risks when drawing up redundancy agreements. What may be appropriate in one violence reduction (RIF) may not be appropriate in another RIF, based on the employer`s business objectives and risk assessment. As stated below, there is no risk-free termination or risk-free severance pay. Employers should ensure that workers have time to consider whether to sign a redundancy agreement, a time frame that varies depending on the age of the workers. This particular legal requirement must be met to allow for the application of a release of rights from the Age Discrimination in Employment Act (ADEA), as amended by the Older Workers Benefit Protection Act (OWBPA). By signing this letter, I confirm that I have had the opportunity to consult the lawyer of my choice; that I have carefully reviewed and examined this agreement; that I understand the terms of the agreement; and that I voluntarily approve them. While it may be tempting to add language to the agreement that seems to prevent the employee from filing complaints with government authorities, employers should be light-hearted. These clauses do not prevent the person from filing an indictment with a government agency such as the Equal Employment Opportunity Commission (EEOC) or from participating in state investigations or proceedings. Avoid these arguments by giving the employee enough time to decide whether to enter into the release agreement. Indeed, the federal law – the Older Workers Benefit Protection Act (OWBPA) – requires such a period (21 days to be precise) if the employer wants a worker aged 40 or over to be able to waive a right to age discrimination.
Then, the employee must be given 7 days after signing the agreement to revoke his acceptance. (The OWBPA also sets out other requirements that can be found here.) Before the start of the withdrawal period, you must give the person 21 days to consider signing the document. Note that the agreement will only take effect after the expiration of these 7 days, since you have 7 days to revoke the agreement. In addition, an agreement cannot prevent you from reporting the employer`s behaviour to the EEOC. In other words, you can file a complaint with the EEOC or NERC at any time; However, if you sign a waiver of rights, you cannot claim damages if the EEOC takes steps to enforce the law against the employer. Example 5: An employee who has worked for his company for 28 years was chosen for an involuntary RIF and was asked to sign a „General Release and Covenant Not to Sue“ for cash. The severance pay provided, among other things, that the worker exempted his employer from „all claims“. . Of any kind,“ including rights under ADEA and other federal, state, or local laws dealing with discrimination in the workplace. .