Are Severance Agreements Slimy Business?
Q: We had to lay off an employee who wasn’t a good fit for us. I wanted to offer her a severance package of five weeks of income, to help her and her family as she searches for a new job. But I read that I should also have the employee sign a severance agreement. I know it’s common, but it feels slimy. What are the ethics here?
Shutterstock
A: Your instinct to offer severance is compassionate and appropriate. It’s also the right message to send in the marketplace: Your company treats people with respect even when things don’t work out. But the accompanying agreement isn’t slimy at all. It’s good business.
Continue reading this article - and everything on Entrepreneur!
We make some of our best content available to Entrepreneur subscribers only. Become a subscriber for just $5 to get an ad-free experience, exclusive access to premium content like this, and unlock special discounts.
Entrepreneur Editors' Picks
-
How Millionaires Prepare for a Recession, According to a Former Wall Street Trader
-
5 Self-Care Habits of Every Successful Entrepreneur
-
Listen Closely to What People Ask You. That's Where to Find Your Hidden Power.
-
Gen Z Customers Want More. This 3-Step Strategy Will Help Your Company Give It to Them.
-
This Founder Was Madly Pulling a Pandemic Pivot When...the FBI Showed Up at Her Door With Guns, Seized Her Money and Told Her Husband He Was the Target of a Criminal Investigation
-
Take Customer Service to the Next Level With These Service-Based Franchises
-
Define Your Short-Term Goals With These 3 Components for Long-Term Success
