What does the term "rescission period" mean in a severance package?
This is the paragraph from my severance package that I would like clarified.
Payment of your severance will be made to you in thirteen (13) biweekly installments, the first of which will be paid as soon as reasonably possible following expiration of the rescission period under the terms of your
Separation Agreement and Release.
Thank you.
Answers (1)
Bear in mind that I haven't seen the agreement, and a definitive answer would depend on reviewing it. However, your Separation Agreement and Release probably has a provision in which you give up the right to sue under the Age Discrimination Act. That law requires any agreement in which an employee gives up its rights under the Act to have in it a provision giving the employee the right to back out of the agreement within 21 days after signing it. So, that paragraph is saying they will start paying after that time period has elapsed in order to guard against the possibility that they could pay you money and then you would back out of the agreement. The paragraph is very common in separation and release agreements.
posted by John Otto | Nov 17, 2011 11:23 AM [EST]
posted by John Otto | Nov 17, 2011 11:23 AM [EST]
