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Pastor, Church & Law

written by Richard R. Hammar, J.D., LL.M., CPA

Severance Agreements

Volume 3 . Chapter 8, Part 4 . § 8-22.1
Key Point 8-22.1 Churches should consider using a severance agreement when a decision is made to dismiss an employee. Such agreements set forth the terms and conditions of an employee's separation. In most cases, the employer agrees to pay the employee a specified sum of money (often expressed in terms of so many weeks of pay) in exchange for the employee's consent to the termination of the employment relationship and a release of any legal claims against the employer. Such agreements should be drafted by an attorney to ensure enforceability.

The termination of an employee is often a traumatic event that can expose a church to litigation. This risk should be taken seriously, since such disputes are a common form of church litigation, and many ...

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