What should I include in a severance package for an employee in Ohio who is being terminated?
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As an attorney, I would advise that severance packages are not required by law in Ohio but are often offered by employers to employees who are being terminated. Severance packages are a way for employers to show gratitude for the work and service provided by the employee, and to potentially minimize the risk of legal action or litigation stemming from the termination.
When considering what to include in a severance package, there are some factors to take into account. For example, the terms of the employment agreement, if any, and any company policies or promises regarding severance. Additionally, if the employee is part of a union, the terms of the collective bargaining agreement may dictate what is included in the severance package.
Typically, severance packages may include:
- Payment: This can include a lump sum payment or a continuation of salary or benefits for a specified amount of time.
- COBRA: Employers may offer to pay for continued health coverage through COBRA for a specified period.
- Stock options: If the employee has stock options, the company may offer to exercise them in full or part, depending on the terms of the options.
- Job search assistance: Some companies offer to help terminated employees with job searches or job placement services.
- Confidentiality or non-disparagement agreements: Companies may ask the employee to sign a confidential agreement or agree to not disparage the company in exchange for the severance package.
It's important to note that each situation is unique, and there may be additional factors to consider when creating a severance package. As such, it can be beneficial for employers to consult with an attorney who specializes in employment law to ensure all legal considerations have been addressed.
In summary, while not required by law, a severance package can be a helpful way for employers to maintain goodwill with the departing employee and potentially minimize the risk of legal action or litigation. When creating a severance package, it's important to take into account any contractual or policy considerations and consider offering provisions such as payment, COBRA, stock options, job search assistance, or confidentiality/non-disparagement agreements. Employers may want to consult with an attorney experienced in employment law to ensure that their severance package is legally compliant and effective.
