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by chralieboy
3987 days ago
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Unfortunately enticement is literally the purpose of the check. You're required to exchange value in order for them to agree to not sue the company. When I had to do my first firing I was surprised that this was the case but our lawyers insisted that we had to offer someone thing of value (can be a check or shares) in exchange for signing a termination document. As for getting them to sign the same day, don't drag anything out. Just get it over with so both parties can move on. It's a terrible experience on both sides (unless one side is an asshole or doesn't care about the company.) |
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In contract law, the general term for that concept (i.e. each party being required to "give" something for the contract to bind) is consideration, and it derives from common law.
For example, if I contract you to build my company a web app, my consideration is the agreed payment, and your consideration is delivery of the web app as agreed.
This is also presumably why those tech CEOs who work for a "$1" annual salary aren't just doing it for $0 instead. Because, traditionally, for an employment contract to be valid, there must be consideration from both parties (the employee gives their labour, the company pays the salary).
The exact rules depend upon the jurisdiction, and nature of the specific situation. Some legal systems don't even require it at all.
https://en.wikipedia.org/wiki/Consideration