Michael L. Feinstein, P.A. issued the following announcement on Aug. 16.
One of the most distasteful jobs of a manager is terminating employees. Because there is always the potential for legal backlash, you probably tread very carefully when considering letting someone go. In fact, you may have employees on your staff who really should be fired except for your reluctance to deal with the legal possibilities.
Many companies use severance packages to protect themselves from litigation that may arise if an employee feels wronged by the termination. Severance packages are effective tools for preserving the reputation of your company and protecting yourself from legal action.
Options for a severance package
Your company is not required by law to offer a severance package to an employee unless your employment contract includes this provision. Nevertheless, you may find it to your advantage to offer a severance if you have reason to believe the employee may otherwise cause trouble for the company. With a severance package, you can offer money, typically one or two weeks' salary per year of employment, in exchange for the employee's signature on documents that include any of the following:
-Agreement not to seek employment with a competitor or to start a competing business in the same region
-Prohibition from taking your clients or enticing other employees to leave
-Contract not to disclose company secrets
-Promise not to say anything negative about your company
-Waiver of right to take legal action for wrongful termination
-Release of your company from claims for unemployment benefits
In exchange, the employee receives money for support while looking for new work. Your company may also offer additional severance benefits such as extension of health insurance, assistance with finding work and a letter of recommendation, if appropriate.
Know the law
Each state has its own stipulations for what you can and cannot include in a severance package. For example, it is important to know how much time you must allow for your employee to review the offer before accepting or declining. You may also need to determine the limitations Florida places on the scope of any non-compete agreement you include.
It would be wise to seek the advice of a Florida attorney who knows and understands employment law. Your employee may do the same, and it is likely he or she will come back to you with additional demands for the severance package. If you keep this in mind when you draft the agreement, you can allow room for negotiation.
Original source can be found here.