Okt 31, 2021 / by mamarina / In Allgemein / Leave a comment
In the world of employment, a severance agreement is a contract between an employer and a departing employee that outlines the terms and conditions of the employee`s departure from the company. It can include details such as financial compensation, benefits, and promises not to sue the employer. While severance agreements are common, it`s important to understand your rights and options before signing one. That`s where the 21-day review period comes in.
The 21-day review period is a requirement under the Older Workers Benefit Protection Act (OWBPA). This federal law requires that employees over 40 years of age who are being offered a severance agreement be given 21 days to review the agreement before signing it. The purpose of this review period is to give employees time to carefully consider the terms of the agreement and to consult with an attorney if they wish to do so.
During the 21-day review period, the employer cannot pressure the employee to sign the agreement. The employee has the right to take as much time as they need to review the agreement and make a decision. However, if the employee decides to sign the agreement before the 21-day period is up, they can waive this right and sign it early.
In addition to the 21-day review period, the OWBPA also requires that employees be given seven days to revoke their acceptance of the severance agreement after they have signed it. This means that even if an employee signs the agreement and changes their mind within seven days, they can revoke their acceptance and the agreement will be void.
It`s important to note that the 21-day review period and seven-day revocation period only apply to employees over 40 years of age who are being offered a severance agreement. Younger employees may not be entitled to these protections under the law.
So why is the 21-day review period important? Taking the time to carefully review a severance agreement can help employees ensure that they are getting a fair deal. It also gives them the opportunity to negotiate the terms of the agreement, if necessary, or to consult with an attorney who can advise them on their options.
If you are being offered a severance agreement, take advantage of the 21-day review period and don`t rush to sign anything. Read the agreement carefully, ask questions if something is unclear, and consider consulting with an attorney before making a decision. Remember, this is an important decision that can have significant financial and legal implications, so it`s important to take the time to get it right.