Talent Canada: Making severance settlements stick
Key considerations for entering into, and enforcing settlement agreements with terminated employees
Negotiating with terminated employees can be stressful and expensive. In most cases, the terminated employee will accuse the employer of breaching contractual obligations, or worse.
More often than not, organizations will lose sight of their rights and obligations, in the interest of a quick resolution.
A good settlement agreement is a legally binding contract, enforceable in court. All of the core terms of the deal must be clearly reduced to writing.
Failing to do so can leave an employer with an agreement that is barely worth the paper it is written on.