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Things you need to know about Employee Quitclaim and Waiver.

1. What is an Employee Quitclaim?

An Employee Quitclaim is a formal document where an employee waives his/her claim or demand against the employer arising from the employment relationship.  It is executed when the employer and employee agree on a settlement aimed at stopping ongoing disputes, or even avoiding future disputes, which are potentially both costly and lengthy. 

2. When do you need an Employee Quitclaim?

An Employee Quitclaim is usually executed upon the termination of the employment relationship.  This is done to foreclose all possible claims the employee may have against the employer.  It may also be executed to end an ongoing dispute between the employer & employee and quickly and finally resolve it.  In short, the Quitclaim is meant to settle all of the employee’s claims against the employer and, in exchange, the employee receives an amount of money.

3. Is an Employee Quitclaim always valid?

As a general rule the Quitclaim must (a) be voluntarily entered into by the employee; and (b) consists of a reasonable settlement.  There must have been no fraud or coercion used on the employee. Further, the settlement amount must be reasonable and not shockingly low.  

Otherwise, if either one of the above requisites is absent, the Quitclaim won’t be valid and the employee may still bring his claims against the employer arising from the employment relationship.

4. How can an Employee Quitclaim protect you?

An Employee Quitclaim protects the employer from all of the employee’s claims arising from the employment relationship.  Once the Quitclaim is executed the employee can no longer bring a claim against the employer, even if they were not aware of such claim at the time the Quitclaim was executed.  In exchange, the employee receives a reasonable settlement amount without much trouble or delay.

The Quitclaim is meant to (a) bring peace between the employer & employee; (b) settle all issues between them; and (c) prevent potentially costly and lengthy litigation. 

5. What information do you need to create an Employee Quitclaim?

To create your Employee Quitclaim you’ll need the following minimum information:

  1. The name and details (i.e. nationality and address) of the employee
  2. The name and address of the employee
  3. The consideration for the quitclaim (i.e. the settlement amount)

Related Documents.

Activities that involve a Employee Quitclaim and Waiver sometimes use the following documents. You may be interested in them:

Document Name