Having terminated employees sign a severance agreement that includes a release stating that the departing employee gives up some or all rights to sue reduces the risk of future litigation.

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This is true. A severance agreement that includes a release stating that the departing employee gives up some or all rights to sue can reduce the risk of future litigation. By signing the agreement, the employee agrees not to sue the employer in exchange for certain benefits, such as a severance payment, continuation of health insurance, or other forms of compensation. This can provide certainty for both parties and help to avoid costly and time-consuming litigation. However, it is important to ensure that the agreement is legally enforceable and that both parties have had the opportunity to review and negotiate its terms.

Having Terminated Employees Sign a Severance Agreement That Includes a Release