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Things to consider when offering workers severance packages

On Behalf of | Mar 23, 2021 | Contract Disputes

Two goals shared among most Fort Lauderdale, FL employers are hiring valuable employees and keeping them on your team. Providing a safe work environment free of discrimination and harassment goes a long way toward meeting these goals. Once employees have proven their value, employers may begin to think about rewarding them for their loyalty.

Employee rewards may include bonuses for a job well done or other fringe benefits. Another way employers want to show workers their appreciation involves adding a severance package clause to their employment agreements.

Can severance packages lead to contract disputes?

Despite your best intentions, contract disputes may arise over the severance packages you offer your workers. For example, if the exiting employee believes the package does not reflect the agreed-upon services provided, he or she may attempt to get more by threatening legal action.

On the other side of the coin, if you offer a severance package and then discover you cannot afford to comply with your agreement, you will probably face trouble for violating the contract’s terms.

Are you required to offer a severance package?

In most cases, employers do not have to offer any form of severance, but many choose to do so anyway. Rewarding your workers in case of layoffs or if they must leave your company is noble and appreciated. However, make sure your packages are appropriate to your workers and affordable for you.

Our attorneys urge all Florida employers to consider these matters carefully before offering severance. Seeking assistance when drafting these agreements can help you avoid contract disputes while keeping your workers content. Please continue exploring our website if you wish to learn more about both contract disputes and employment law.