When is a release of claims required

Thus, the individual could bind the company. What should contractors take away from Horton Construction? Although the question of whether a contractor has released a claim is a fact-specific one, recent decisions have generally tilted toward reading waivers broadly in favor of the government.

United States , F. At this time, the prospect of a settlement package to top off your statutory notice entitlements will likely will feel very tempting — especially if you are not parting on the best of terms. However, you will likely have to sign a release of claims in order to get it. So what should you do? Once given a release, you must also be given reasonable time to review it.

Demanding a terminated employee sign a release on the spot should raise immediate suspicion. A release can be negotiable. Therefore, you should seek legal advice before signing one. They can explain it to you in plain language and let you know if any claims that you would be signing away could ultimately bring you more money or benefits than the settlement package you are signing.

The employment law team at KCY at LAW can review your release and release of claims and help you decide on the best course of action. Do you understand the release? Often, releases are written by the company's lawyers, which means they might include plenty of legalese and boilerplate language. They also might include terms that you aren't entirely comfortable with, such as a confidentiality clause or a noncompete agreement attempting to limit who you can go work for.

If you don't understand what you're getting, what you're giving up, and what else you're agreeing to, or you want to know whether you might be able to negotiate something better, talk to an employment lawyer. Will you have a chance to change your mind? If your employer is asking you to waive the right to sue over age discrimination claims under the Age Discrimination in Employment Act ADEA , you are legally entitled to 21 days to consider the release before signing it -- and another seven days after you sign to change your mind and revoke the agreement.

Some employers give everyone a chance to consider the agreement and revoke it after signing, just to make sure that a court doesn't later find the employee was coerced into signing. If you aren't being asked to waive age discrimination claims and the agreement doesn't include a revocation clause, you will be bound by the release once you sign it, unless you can prove that it is illegal or invalid.

Do you need more information? If you don't fully understand what you're being asked to sign or what legal claims you may have against the company, we strongly suggest that you talk to a lawyer before signing. Although it's possible to overturn a signed release, it can be very difficult.

The better course of action is to make sure you know what you're giving up before you sign a release. Additional Information For more information on what to expect when you lose your job -- and all other key legal issues related to employee rights -- get Your Rights in the Workplace , by Barbara Repa Nolo. Talk to a Lawyer Need a lawyer? Start here. Practice Area Please select Zip Code. How it Works Briefly tell us about your case Provide your contact information Choose attorneys to contact you.

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