What you should do is pay attention to all the points highlighted in the Employment Age Discrimination Act and prepare a valid redundancy agreement tailored to your employee`s circumstances. It is sometimes desirable for the company and the dismissed employee to enter into a transitional advisory relationship after the termination of the employment relationship. The company may use the employee`s expertise and institutional memory, while the employee may be able to generate additional revenue. Among the most important conditions of these transitional agreements are: if you are over 40 years old, if you extend an offer of comparison, the rules are very simple. They have rights under the Older Workers Benefit Protection Act (OWBPA) passed by Congress in 1990. Under this law, any sacked employee over the age of 40 who is offered a redundancy contract must have at least 21 days to review the offer. Learn how to negotiate a reasonable severance package, especially if you have an existing job… [+] agreement. Companies often insert a paragraph in the severance agreement prohibiting the outgoing employee from posting “derogatory” comments or statements about the company or passing them on to a natural or legal person. And this provision may include a definition of “disparaging” such as this: “Derogatory remarks, comments or statements are those that have a say in character, honesty, integrity, morality, business acumen, or skills related to any aspect of the work of the individual or person who is denigrated.” Such a broad obligation could be easily broken, especially if the worker is trying to explain to a new employer why he left the last employer, so that some restrictions here may be appropriate. A company may be required to pay severance pay under the employee`s employment contract, the WARN act or its state equivalent or company policy.

Although the company is not required to pay severance pay, it will often offer severance pay in exchange for various agreements of the dismissed employee, including the release of any claims against the company (see below).