Reciprocal releases and obligation not to file a complaint. As a general rule, severance pay agreements require the worker to release the employer from all rights he has up to the date of the agreement and an explicit agreement not to sue the employer. Employers are most concerned about discrimination claims filed with the EEOC and offer severance pay in the hope of avoiding possible claims that, even if frivolous, can result in considerable costs for a company to defend the complaint. The EEOC guidelines conclude that a signed authorization and authorization may be unnecessary if it is knowingly and voluntarily authorized. It may not be used to restrict a staff member`s right to testify or attend an investigation conducted by the EEOC, or to prevent a staff member from filing a complaint of discrimination with the Agency. In addition, an employer may not require a worker to return severance pay before a fee is filed. Some of the issues that need to be considered before signing a termination agreement may be the following: the above relates only to the issues that the Virginia employer should consider when offering severance pay. In most cases, it is always highly recommended that an employer offer severance pay, as this is an effective way to reduce future liability. But like many questions in the law, it`s not black and white.
Do you need more information about what a termination agreement is in Virginia? Take a look at our Virginia Model Severance Agreement. The employee must resign. Typically, a severance pay agreement contains a language that indicates that the employee resigns instead of being terminated. Employers often claim this language because of the belief that such a language would cut off any right to unemployment. In Virginia, an employee who resigns is not entitled to unemployment benefits. However, how should an employer react when a worker refuses to accept such a language? Is there an advantage for an employer to impose such a language? The answer is that employers should not make this subject alone a sore point for the conclusion of a redundancy agreement. The Virginia Unmployment Commission found that a voluntary departure, which would generally disqualify an employee for benefits, does not include situations in which an employee resigns instead of a termination. . . .