Transitioning staff out of employment
By requiring the employee to release any claims
against the organization, the employer reduces exposure to potential litigation, including claims related to wrongful termination, retaliation, or wage and hour disputes. Tis contractual release provides certainty and finality, which can protect both financial and reputational interests. For the employee, severance agreements can
provide valuable financial and practical benefits during a period of transition. Severance pay, continuation of healthcare coverage, outplace- ment assistance, or other negotiated benefits can help ease the transition to new employment. Te agreement also clarifies the employee’s rights and any entitlements upon separation, such as final compensation, accrued vacation, or contin- uation of benefits. In addition, employees may negotiate favorable terms, such as the framing of a departure in reference letters or public announcements, which can assist in securing future employment. By memorializing the terms of separation
in writing, severance agreements facilitate an orderly conclusion to the employment relation- ship and create a framework for both parties to transition successfully and not prolong disputes. Camp and conference center boards can
establish a policy regarding when severance is paid. Te executive director and operational leadership should have flexibility on when and how much makes sense in the context. A severance agreement should be required for any separation arrangement that involves payment of any funds or benefits in addition to normal pay or benefits for a departing employee.
Jonathan A. Ruybalid, CCCA’s legal counsel, has represented U.S. and overseas nonprofits for more than 25 years. He has also served as a board member and general counsel for Forest Springs Ministries and Camp Forest Springs. Email him at
jrlaw15@gmail.com.
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