To all business managers/experts out there:

I have to fly to chicago tomorrow to terminate an employee 6 months before his contract expires. Being that he is in a sales position, we are asking him to sign a termination agreement. In essence, the agreement states that the employee will not sue the company for any reason, or steal any customer and/or confidential company information. After he signs the agreement, I am to give him his severance check.

Obviously, the guy was hired as an "At Will" employee.

Being that I am relatively new to the "Middle Management" arena, I have a couple of questions.

Q1: If the employee will not sign the agreement, do I still give him the severance? I don't think I have to, but just want to make sure.

Q2: If the employee will not sign the agreement, what then? I'm assuming I throw it all back to our legal department, but you know the cliche regarding assumptions.

Any advice greatly appreciated.

Punch him in the face.

DieHard --

It is simple. If he doesn't sign he doesn't get the check. I fired someone last year and I was nice about it but made it clear to them that this check was not something that we had to do. I was told by our lawyers that there is a recision period even after they sign.

But the bottom line is if they don't sign they don't get paid. If they don't sign they can deal with the legal department. It will no longer be your problem. But if it is an at will sales position and you have things documented he isn't going to get a penny.

Good luck!

Its been many moons since I had to make decisions like that but if I
was you I would check with your Human Resources Dept and/or Legal
so I would know if I had their backing in any situation that will arise because
of this. The last thing you want them saying to you is your should have this
and why did you say that.

DH - Max is right. He would get the dispensation for agreeing to the terms and conditions outlined in the document. No tickey - no washey. Usually there are stipulations whereby they can't discuss the terms of the agreement with anyone outside their immediate family and as much stuff as you can reasonably tie the guy down to in non-compete or risk forfeiture and repayment. To bad you aren't staying over - we could have hit Buddy Guy's place.

DH - Max is right. He would get the dispensation for agreeing to the terms and conditions outlined in the document. No tickey - no washey. Usually there are stipulations whereby they can't discuss the terms of the agreement with anyone outside their immediate family and as much stuff as you can reasonably tie the guy down to in non-compete or risk forfeiture and repayment. To bad you aren't staying over - we could have hit Buddy Guy's place.

Thanks Max, Sr, and NJ. Appreciate the advice.

You live in Chicago Jetster? I should be there a lot in the coming months (interviewing, training, etc.), so I'll PM you before my next trip.

Thanks Max, Sr, and NJ. Appreciate the advice.

You live in Chicago Jetster? I should be there a lot in the coming months (interviewing, training, etc.), so I'll PM you before my next trip.

Great Bro - looking forward to it.

DH, I would listen to max he has had a lot of practice in this department.:)

DH, I would listen to max he has had a lot of practice in this department.:)

Did he "terminate" your predecessor? :)

you are asking business advice from these people????

:bwahaharoll:

Thanks Max, Sr, and NJ. Appreciate the advice.

You live in Chicago Jetster? I should be there a lot in the coming months (interviewing, training, etc.), so I'll PM you before my next trip.

You forgot to thank Thor99.

Did he "terminate" your predecessor? :)

He saved the best for last!!!!!:)

Q1: If the employee will not sign the agreement, do I still give him the severance? I don't think I have to, but just want to make sure.

Q2: If the employee will not sign the agreement, what then? I'm assuming I throw it all back to our legal department, but you know the cliche regarding assumptions.



Q1: What is you company's policy on severance pay? If severance is accumulated through time of service and it is written policy, then it would be illegal for you to with hold the check regardless if he signs the agreement or not.

Typically, (at least the company I worked for) would offer and additional 3, 6, or 9 months of pay and benefits if such an agreement was signed.

Q2: Again, this will go back to what your company policy (in writing) is with regards to severance.

My advice, get on the horn real quickly with you HR director and make sure you understand the policy before sitting down with the employee.

Q1: What is you company's policy on severance pay? If severance is accumulated through time of service and it is written policy, then it would be illegal for you to with hold the check regardless if he signs the agreement or not.

Typically, (at least the company I worked for) would offer and additional 3, 6, or 9 months of pay and benefits if such an agreement was signed.

Q2: Again, this will go back to what your company policy (in writing) is with regards to severance.

My advice, get on the horn real quickly with you HR director and make sure you understand the policy before sitting down with the employee.

It's my understanding that as an "At Will" employee, you can be fired for good reason, bad reason, or no reason at all.

The termination is by mutual consent. There's a clause in his initial employement contract under the 'Termination' section that reads: "This agreement may be terminated upon mutual written consent of Company and Employee. Company's total liability to Employee in the event of termination of employment under this subsection shall be limited to the payment of Employee's salary and benefits through the effective date of termination."

I take that as he doesn't have a right to any severance if we don't want to give it to him because the termination agreement calls the termination "..by mutual agreement.."

I was really just wodering if it was legal to withhold severance in this case should the employee decide to not sign the agreement.

Also, my HR dept is in Japan, and their policies are much different than they are here in the US.

You forgot to thank Thor99.

Sorry about that.

THANKS FOR THE ADVICE THOR!

Hmmm...going to Chicago to fire someone....Dusty Baker?

Hmmm...going to Chicago to fire someone....Dusty Baker?
The Japanese would have s___canned that moron after the 03 playoffs. They have a low tolerance for ineptitude.

Also, my HR dept is in Japan, and their policies are much different than they are here in the US.

You should use that to your advantage. Tell him take this check and get the hell out of here. No way he wants the HR Dept over there to handle this!