“Ho, ho ho…you’re fired [or laid off]!” Those are not words that any
employee wants to hear, and are even more stressful during the
holidays.
Unfortunately, as we enter the holiday season many employers are already looking ahead to next year’s budget and making layoff decisions. During the last quarter
of the year, and especially the last two months of the year, many hard-working
employees are issued “pink slips,” often despite performing well, and many times
with little to no prior notice. In such situations, employers will often offer
some severance pay, but conditioned upon executing a release. Under Florida law,
there is no requirement to pay severance, so employers will almost always
require a release to accompany any severance offered. It is the proverbial
“carrot and a stick,” but provides the employer peace of mind that no
post-employment claims can be made against the employer. While there is no
precise formula for the amount of severance that is offered, many times
employers will offer one or two weeks per year of service, with more being
occasionally offered for upper management employees. Because release and
severance agreements typically involve a complete relinquishment of all legal
rights, it is advisable to have such agreements reviewed by an attorney. At
Wilson McCoy, P.A. we have reviewed many severance and release agreements for
employees and drafted them for employers. If you would like to have your
severance agreement reviewed or have one prepared for your company, please
contact us today at 407-803-5400 for an analysis of your situation and to
schedule a consultation.