Claudette is being terminated from her position as the Chief Financial Officer of a private university. She has signed an agreement in which she has agreed not to to sue the employer in return of certain benefits. This best exemplifies a(n)_____.
A) separation agreement
B) yellow-dog contract
C) severance contract
D) employment contract

Question

Quizplus · Accepted Answer

This scenario describes a separation agreement, which is a legal document signed by an employee and employer outlining the terms of the employee's departure from the organization. These agreements often include provisions such as severance pay, a release of claims, and potentially other benefits in exchange for the employee agreeing not to sue the employer. A yellow-dog contract refers to an agreement in which an employee agrees not to join a union, which is generally illegal under US labor laws. A severance contract is often a component of a separation agreement and outlines the terms of any severance pay the employee may receive. An employment contract outlines the terms of employment and is generally signed at the start of an employment relationship.

Claudette Is Being Terminated from Her Position as the Chief