Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

On October 20, 2007, Diana Maier gave a talk in San Francisco on separation payments in the employment context.

Maier mentioned that severance agreements were a good investment for companies because terminating an employee is not always easy for the employee.  The employee may think twice about filing a lawsuit if there is a separation payment that can be accessed immediately.  The employer gives a good gesture to say that the separation payment is a way to help the person find another job though he/she has not worked out with the position.  The employer shows sympathy so that the employee does not walk away disgruntled.

Sometimes workers compensation can preempt an employment claim if the person signs a release after workers compensation is terminated.  The employee looking to settle a workers compensation claim should not settle until the employment claim is settled.  Usually the employment claim is more powerful.  An employer should not terminate people unless there are preventive measures, especially when the employees are on leave.  If there is no hardship on an employer, jobs should be kept open for employees on leave.