If you use a single model for all your severance agreements, you do it wrong. There are some things you should NOT do in compensation agreements for employees over 40 years of age. When negotiating a compensation agreement, ensure that the age discrimination exemption is written in an understandable manner. The severance agreement should be simple and easy to understand, without using obscure or advanced legal terminology. What you should do is pay attention to all the points highlighted in the Employment Age Discrimination Act and prepare a valid redundancy agreement tailored to your employee`s circumstances. In many cases, employees are pressured to sign the termination contract without reasonable notice. 3. Exercise care for employees 40 years of age and older. The Law on the Protection of Older Workers for the Protection of Workers sets specific requirements for the release of rights to discrimination on the basis of age. These requirements are intended to ensure that a worker aged 40 and over has the opportunity to make an informed decision when deciding whether or not to sign a debt release.
In particular, some of the OWBPA requirements (but not limited to) include a 21-day period to review the agreement; a seven-day retraction period after signing; and a particular reference to the Employment Age Discrimination Act. If the company makes a “collective dismissal” (i.e. a dismissal of 2 or more people), there are additional requirements. For example, employees selected for dismissal must have 45 days to verify the agreement and must also have received information on the age and position of persons who are kept and dismissed in the “decision-making unit” concerned. All severance agreements for workers over the age of 40 must refer specifically to the rights of age discrimination in the Labour Act. ☐ prepare some papers. Most employers use at least (a) a voluntary FIR announcement clearly specifying eligibility criteria, severance pay and available time frames, and (b) a separation agreement with full release of rights. For voluntary RIPs, the same legal requirements apply to the waiver of employees` rights in involuntary RIPs (see above). Under the protection of the ADEA, workers have at least 21 days to check whether or not to accept the redundancy package, and at least 7 additional days to revoke the contract. It is important for the employee to sign the severance agreement without pressure from the employer or a third party.
☐ expect litigation. There are various and often numerous documents that have been written in an FIR, including working papers, statistical analyses and separation agreements with exhibitions. If a complaint comes from the FIR, it is very likely that these documents will be requested by the plaintiff`s counsel, and they could be displayed in the courtroom. So be careful about what is written and how it is formulated: a jury can look over your shoulder in two years. Contact the Council to ensure that certain documents are protected by various legal “privileges.” The OWBPA aims to protect workers over the age of 40 from discrimination in the workplace, including wrongful dismissals. The OWBPA protects frail workers by strictly abandoning the employment guidelines that employers must follow. As long as employers meet these criteria in their severance agreements, they will be relieved of any right to age discrimination and the risk of trial. ☐ look to the future. The economy can change, and with something can an employer reinstate in a few months a worker who was part of a RIF this month.
Consider these reintegration options when planning an FIR, if a) stopping severance pay (because it can be difficult to reinstate an employee who received a huge package of severance pay in a recent FIR) and b) to release