Question: During difficult termination processes, companies utilize certain documents and legal processes to make the situation better for all parties involved. Why is a release of

During difficult termination processes, companies utilize certain documents and legal processes to make the situation better for all parties involved. Why is a release of claims document frequently used by HR in the termination process?

  • It allows the company to recoup costs associated with sign on bonuses, relocation packages, etc.
  • It allows the individual to receive additional severance pay while voiding any potential claim of litigation.
  • It allows all proprietary information to still be legally bound to the company and not to the employee or former employee.
  • It allows all tangible assets to be retained by the company for industries that make tangible products such as manufacturing and textiles.

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