Charles A. Bruder and David T. Harmon will present the Lorman webinar, “Utilizing Settlement and Severance Packages,” on Tuesday, March 21 from 1:00-2:30pm. CLE, CPE, SHRM, HRCI, and NASBA credits are available. For registration information, please click here.
Employers, large and small, are dealing with more frequent changes in their employee populations than ever before. In this environment employers will want to consider utilizing settlement or severance packages to ensure that the exit of an employee (or employees) is smooth for both the employer and employee. Many employers do not know the key issues to address in a settlement or severance agreement, or how to structure severance payments in a way that will benefit both the employer and departing employee. This topic will help you identify the key situations where settlement or severance agreements are most useful, what the key issues to address in such agreements are, and how to draft such agreements to benefit both the employer and departing employee. This content will also address the key tax and regulatory issues that companies should be aware of when considering the use of settlement or severance agreements. Many of the issues involving settlement or severance agreements are often overlooked at the time of drafting because such issues are typically triggered later on, well after the separation of employment has occurred. This topic will be important for all employers to protect their business interests, and to avoid tax and other regulatory liabilities associated with different structures of settlement or severance pay.
– You will be able to recognize key situations when you should consider utilizing a settlement or severance agreement to deal with separating employees.
– You will be able to identify key clauses and provisions that can help an employer protect it from certain concerns over a separating employee.
– You will be able to explain the different compensation structures related to severance pay, and explain the different associated tax and regulatory risks.
– You will be able to discuss how settlement and severance agreements are an important tool that employers can use to control situations involving employees who separate from service.