Your employees are your business’ most expensive asset. According to one estimate, up to a third of a person’s salary is devoted strictly to hiring costs. The cost of hiring the wrong employee is even more- reportedly up to twice an employee’s annual salary. Making smart hiring decisions can be tough- you want an employee […]
Ritu Anand of GE India sent me the below questions concerning my October 28, 2007, post concerning severance and separation agreements.
Thanks for throwing light on this subject! However, I have a few doubts and would appreciate if You could help resolve them:
1. What is the guarantee that the exiting employee would not reveal the secrets/sue the firm even after signing the severance agreement/taking the money ?
2. is this a common practice in US/other parts of the world?
3. If this is a common practice with the organizations in the US , most of the companies would end up busting their HR budgets by paying severance to the exiting employees and all working population must be aware of this .. your views ..
GE – India
My response to Ritu follows:
Posted by Charles Krugel in Legal
General discussion concerning severance and separation agreements from a business owner’s perspective.
Continued from previous article “Why Utilize an HR Attorney as a Consultant?” Labor & Employee Relations Defined These are two distinct categories which are often confused with one another because they somewhat overlap. Generally, labor law refers to the body of laws and rules regulating labor unions and associations and their relationship with management. Such […]
Continued from previous article “Macro and Micro HR” Although all businesses with employees practice HR, and some even have an in-house HR people, many businesses still encounter HR related problems. Moreover, there are legal ramifications associated with many human resources issues that many HR professionals just aren’t qualified to deal with. When these costly and […]
GetEntrepreneurial.com is a small business blog dedicated to providing business advice and resources to our community of aspiring entrepreneurs. Our specially hand-picked panel of GetEntrepreneurial.com Network experts regularly contribute entrepreneurial content and professional tips for small business owners worldwide.