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wallstreetfighter
wallstreetfighter, Employment Lawyer
Category: Employment Law
Satisfied Customers: 17223
Experience:  14 years exp, General counsel for National Corp. firms, Hostos College instructor, Represented employees in discrimination lawsuits
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We have an employee who is just not working out. He is not

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We have an employee who is just not working out. He is not as productive or knowledgable as expected. We are a small business and cannot afford to carry him. We would like to ask him to resign and provide a nice severance package (6 weeks pay and health insurance for 6 weeks). Are there issues we should be aware of? Downsides?

wallstreetfighter :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification

wallstreetfighter :

This is a common question

wallstreetfighter :

under the law, unless the employee is a contract employee or part of a Union, an employee can be terminated at anytime and for any reason,

wallstreetfighter :

if you are going to terminate him, a severance is fine, however it should include a release form, which prohibits the employee from bringing any lawsuits against the company.

wallstreetfighter :

Also, you can terminate him now, and he would be entitled to unemployment insurance,

Customer:

That doesn't really answer my question. I would like to know if there are any risks associated with soliciting a resignation from an employee, and if there is a way to craft the resignation letter, or acceptance of resignation letter, to protect us (the employer).

wallstreetfighter :

The release form is what is needed to protect you from any liability,

wallstreetfighter :

that is given as standard practice when a severance offer is made, it is contingent on the signing of a release of claims letter being signed.

Customer:

can you recommend a template of the release form?

wallstreetfighter :

EMPLOYEE FINAL RELEASE


IN CONSIDERATION of the payment to me of the sum of TWO DOLLARS ($2.00), receipt of which is hereby acknowledged, I, [NAME OF EMPLOYEE SIGNING RELEASE], on behalf of myself, my heirs, administrators and assigns (hereinafter collectively referred to as the “Releasor”) hereby release and forever discharge [NAME OF EMPLOYER], its parent, subsidiaries and affiliates and each of its and their respective officers, directors, employees, servants and agents, and their successors and assigns (hereinafter collectively referred to as the “Releasee”) jointly and severally from any and all actions, causes of action, contracts and covenants, whether express or implied, claims and demands for damages, indemnity, costs, interest, loss or injury of every nature and kind whatsoever arising, which I may heretofore have had, may now have or may hereinafter have and without limiting the generality of the foregoing, all claims in any way relating to the hiring of, theemployment by or the termination of employment of the Releasor by the Releasee and I hereby specifically covenant, represent and warrant to the Releasee that I have no further claim against the Releasee for or arising out of myemployment or cessation of employment which specifically includes but is not limited to any claims for notice, pay in lieu of notice, wrongful dismissal, severance pay, bonus, overtime pay, incentive compensation, interest, vacation pay or any claims under any employment or human rights legislation.


AND FOR THE SAID CONSIDERATION I further covenant and agree to save harmless and indemnify the Releasee from and against all claims, charges, taxes or penalties and demands which may be made by any governmental authority requiring the Releasee to pay any recognized federal, provincial and local taxing authorities in respect of income tax payable by me in excess of the income tax previously withheld.


IT IS UNDERSTOOD AND AGREED that the giving of the aforementioned consideration is deemed to be no admission of liability on the part of the said Releasee, said liability in fact being denied.


IN WITNESS WHEREOF I have hereunto executed this Release by affixing my hand and seal on


[DATE OF SIGNING OF RELEASE], in the presence of the witness whose signature is subscribed below.


Date: __________________________________


………………………………………….. ………………………………………….


Witness [NAME OF EMPLOYEESIGNING RELEASE]

Customer:

excellent. thank you!

wallstreetfighter :

The above should be given when any severance is given, once signed the employee cannot raise any legal claims against you

wallstreetfighter :

If you have any further questions please do not hesitate to ask.

wallstreetfighter :

If satisfied please provide us with positive feedback,

wallstreetfighter and other Employment Law Specialists are ready to help you