Employers and employees must understand their existing rights and obligations before signing a separation agreement. An existing agreement or law may already require an employer to provide certain payments, paid leave, ongoing insurance coverage, or other benefits. Similarly, an employee may have already signed a non-compete obligation, non-solicitation, non-insult, non-disclosure or other restriction as part of a stand-alone agreement or letter of offer. The main purpose of the agreement is to exempt the employer and employee from misconduct during the period of employment. On both sides, it is possible that one of the parties will be accused of any type of misconduct, whether justified or not. In certain circumstances, 45 days must be set aside for the review of the agreement. The employment counsellor should be consulted to determine the period of time required. There is usually no specific time when an employee is allowed to review or reject an offer to reject claims. You can ask for more time, but the employer doesn`t have to give you more time. The only exception is ADEA`s claims, which provide that employees aged 40 and over have 21 days to review any agreement that waives claims under ADEA.

Exemptions from wages and hourly claims filed under the Federal Act on Labour Standards (FLSA) are also generally unenforceable unless the release receives court approval or is subject to the supervision of the Ministry of Labour. The employer may have additional financial responsibilities to the employee due to the termination of the relationship. In “III. Severance pay”, we determine whether the employer makes payments to the employee after the end of the period of employment. If the employer is not required to make payments in addition to the employee`s regular salary, check the “No severance pay” box. If the employer is required to make an additional payment to the employee, check the box labeled “One-time payment” and enter the dollar amount to be paid to the employee as severance pay in the first empty line of this choice. If this is the case, go to item “A” of this selection and indicate whether the employee will receive additional severance pay. If not, check the “No other severance pay” box. If yes, check the box “Other severance pay” and indicate on the blank line provided for this purpose what such severance pay is. If the employer is expected to provide the employee with more than one severance package, leave the first two options unchecked in this selection and check the “Multiple Payments” box. You must also set the dollar amount of each payment that the employer must make to the employee in the blank line after the dollar sign with the last calendar date on which these payments can be made under the words “Ending On”. Then define the frequency with which these payments are made by checking the box “Weekly”, “Biweekly”, “Monthly” or by filling in a specific calendar in the blank line provided for this purpose.

Once this is done, pay attention to point “A” of this selection by checking either the box labeled “No other severance pay” or the checkbox labeled “Other severance pay” and then specifying the additional severance package that the employer must send to the employee. In the next article “IV. Restitution of property”, we will indicate when the employee must return property to the employer. If the employer does not have such a requirement for the employee, check the “No obligation” box. If the employee is expected to return items to the employer, check the “Employee with an obligation to return” box to require a manifest of the items the employee must return, which are in the empty line after the words “.” Returned to employer. If the employee needs to return these items before a specific calendar date, specify that calendar date in the two empty fields in the “A) Return Date” item. The following article will also require our attention. In “V. Non-compete obligation”, we will address the employer`s possible concerns regarding the security of intellectual property, trade secrets, etc.

If the employer does not expect the employee not to be in the “. Identical or similar industries that compete directly or indirectly with the employer`s business,” then check the first box. If the employer does not expect the employee to participate in contests in any way in the same or a similar industry, check the second box that says “There should be a non-compete obligation.” This requires that you create additional information about some of the items presented. Start by reporting any industry that the employer intends to prevent the employee from participating in the empty line of “A.”). Industries. Then to point “B.) Term”,” enter the number of days or months during which the employee must refrain from participating in restricted industries, and then check the “Days” or “Months” box to indicate how this number is reported. .