If a termination clause is not properly understood or signed after hire, what can happen?

If a termination clause is not properly understood or signed after hire, what can happen?

• A. It remains enforceable
• B. It is always valid
• C. It is automatically void
• D. It can be unenforceable

Answer: (D)

Mutual assent and clear agreement are essential for a termination clause to bind an employee. If, after hire, the clause isn’t properly explained or the employee doesn’t sign to confirm acceptance, there may be no enforceable agreement to those terms. In that situation, a court can deem the clause unenforceable because there wasn’t true consent to its provisions. As a result, the employee’s entitlements to notice or severance will typically default to statutory or common-law protections, and the employer cannot rely on that clause to shorten or waive those rights.

Mutual assent and clear agreement are essential for a termination clause to bind an employee. If, after hire, the clause isn’t properly explained or the employee doesn’t sign to confirm acceptance, there may be no enforceable agreement to those terms. In that situation, a court can deem the clause unenforceable because there wasn’t true consent to its provisions. As a result, the employee’s entitlements to notice or severance will typically default to statutory or common-law protections, and the employer cannot rely on that clause to shorten or waive those rights.