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Are Your Employment Contracts Missing This Very Important Thing?

Are Your Employment Contracts Missing This Very Important Thing?

Every offer letter your company issues should have a prenup; well actually, just a termination clause.

What happens when employment comes to an end?

Repeatedly, I notice offer letters going out and don’t specify what happens when employment is terminated. Directors, Vice-presidents, Managers, and standard employees: all of them make the common mistake. This is an important aspect that should be taken care of.

In the rare circumstances where employees are let go, they might be entitled to the minimum standards as per the relevant state, provincial, or even federal laws.

But, most of the time they will seek out a lawyer or they will Google termination/severance pay. In this case, a lawyer’s website will come up and they could tell them that they are owed six months of severance pay. 

When you let somebody go and the offer letter they signed off on one, two, five, or ten years ago doesn’t include termination provisions, then you, as the employer, are screwed. 

To conclude, it is highly important to make sure that you have a termination clause listed in every employment offer letter you issue. It will prevent headaches, loss of time, and money down the road.

If you have any questions about employment offers and termination clauses, please leave a comment below!

 

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