Redundancy and release agreements are a valuable opportunity for employers to avoid costly litigation if agreements are properly developed. To avoid unpleasant challenges, employers should update their agreements to ensure that they comply with all applicable national and federal laws. There are exceptions that a non-disappearing agreement cannot take into account. According to Cheddie, an agreement cannot prevent anyone from asserting a right to worker`s compensation or from receiving benefits due to injury or illness. You can`t stop an employee from saying negative things to a government agency that`s conducting an investigation, Elkins says. For example, if the Equal Employment Commission reviews a discrimination claim or if an organization such as the FDA or EPO reviews your company`s practices, you can speak freely to that agency. A mutual non-disappearance clause, in which “the company undertakes not to denigrate the employee,” is almost impossible for the company to honour. “Business” is a broad term that encompasses many people, including officers, directors, employees, agents, etc. Thus, the “reciprocal” non-disappearance clause could be the promise of the company that any current and future public servant, director, employee, etc., will not denigrate the former employee. This is an unreasonable obligation and should be avoided! The court rejected the defendant`s intuitive argument that the non-denigration freelife clause was not applicable because it was too vague to say exactly what the parties had agreed to – the question “What is “disappearance” and how do you do it?” Unfortunately, the court had no problem telling the accused what the word meant and how he did it. He saw no further than the Oxford English Dictionary: when workers obtain redundancy agreements before their last working date, employers are often in a hurry to get the worker`s signature in the agreement, before the last employment date. It is likely that employers want a solution of some kind in these situations.
Be sure to clearly distinguish between “liberated” parts of “the business.” Generally, release agreements use “the company” as the term defined for the employer who agrees to pay the severance pay: z.B. “The company agrees to pay the next redundancy package.