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Separation agreements may help protect your company

Running a business comes with many responsibilities. While a number of those duties may allow you to strengthen your company and reap the benefits of your hard work, you may also have to deal with tasks that seem less enjoyable. As an employer, gaining and losing employees likely take place relatively often as your business needs change, and you may find yourself having a difficult time letting an employee go.

This type of situation can cause tension for everyone involved, especially if the employee's leaving comes about due to termination or layoff. Therefore, you may wish to consider how to protect yourself and your company while also allowing the employee to understand the dissolution of the business relationship.

Employment separation agreement

One way to ensure that everyone remains on the same page when it comes to ending the employee's involvement with the company revolves around an employment separation agreement. This document can dissolve any binding claims, obligations and connections the former employee had with the business operations. Additionally, you can add terms to the agreement to protect company information.

Specific terms

The document should provide certain information regarding the end of employment in order for both parties to understand the situation. Specifically, the document may have the reason for dissolving the employment relationship, the date of termination and details regarding any severance packages or remaining wages. You should also include information regarding the payment method for severance or wages.

Additionally, you and the employee may wish to review your original employment contract. If you had included terms regarding termination procedures in that original agreement, you will want to ensure that the separation agreement adheres to any binding terms made in that contract. If you do not take this measure, you could face legal repercussions.

If you wish to protect trade secrets or other confidential information regarding your business operations, you may also wish to consider adding non-compete and non-disclosure terms in your agreement. By agreeing to the terms, a former employee gives up the right to work for a competitor for a certain amount of time and also agrees to keep certain information confidential.

Creating an agreement

Though an employment separation agreement is not necessary for letting an employee go, having this agreement could help each party understand why the termination has occurred. By providing this information to the employee and gaining the employee's willing agreement, you may also protect your company from lawsuits regarding wrongful termination. To better understand whether creating such a document could work in your company's favor, you may wish to consult with an experienced Ohio attorney.

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