Employment Agreement With Severance Clause In Phoenix
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FAQ
Arizona follows the “at-will” employment doctrine, allowing employers to terminate employees without cause as long as the termination is not discriminatory or retaliatory.
Under Arizona law, it is mandatory for employers to secure workers' compensation insurance for their employees. Workers' compensation is a “no fault” system in which an injured employee is entitled to receive benefits for an industrial injury, no matter who caused the job-related accident.
ARIZONA EMPLOYMENT PROTECTION ACT (AEPA) (A.R.S. § 23-1501) This means that an employer may discharge an employee for any reason or for no reason at all, with or without notice. An employer, however, may not discharge an employee for a reason that violates Arizona's public policy or Arizona's employment laws.
The terms of each agreement can vary greatly, and the initial severance package offered may not adequately compensate you for the loss of your job and the legal rights you're waiving. It's also not uncommon for employers to impose deadlines, attempting to pressure you into accepting a less favorable offer.
It is unlawful to terminate an employee because of his or her race, gender, age, disabilities, national origin, color of their skin, or pregnancy. It is also unlawful to terminate an employee because they complained about such discrimination.
The Legal Arizona Workers Act allows a County Attorney to bring a civil suit to suspend or revoke state and local Arizona business licenses if a business intentionally or knowingly employed non-citizens that do not have the right to work in the United States (an "unauthorized alien").
How to Structure a Severance Agreement Determine Eligibility: Decide which employees will be offered a severance agreement based on company policy or specific circumstances. Consult Legal Counsel: Work with an attorney to draft the agreement to ensure compliance with federal and state laws.
Here is an example of a termination clause: “Party A and Party B have the right to terminate the Contract under material breach, change in circumstances, insolvency, and mutual agreement. To terminate the Contract, the terminating party must provide 30 days of written notice to the other party.
“If any term of this Agreement is to any extent invalid, illegal, or incapable of being enforced, such term shall be excluded to the extent of such invalidity, illegality, or unenforceability; all other terms hereof shall remain in full force and effect.”
