Executive Employment Agreement Termination for Disability

Executive Employment Agreement Termination for Disability: What You Need to Know

As an executive, you have likely been offered an employment agreement that outlines the terms of your employment with a company. This agreement likely covers everything from your salary and benefits to your job responsibilities and performance expectations. However, there is one aspect of the agreement that you may not have considered: what happens if you become disabled?

The reality is that disability can happen to anyone at any time. Whether it is the result of an accident or an illness, a disability can have a significant impact on your ability to perform your job. In some cases, it may even make it impossible for you to continue working at all. That`s why it`s important to understand what your executive employment agreement says about termination for disability.

First and foremost, it`s important to note that terminating an executive employment agreement due to disability is a sensitive issue, both legally and ethically. If you become disabled, your employer cannot simply terminate your employment without following certain legal requirements and providing reasonable accommodations, if possible.

Under the Americans with Disabilities Act (ADA), employers are required to make reasonable accommodations for employees with disabilities, as long as it does not create an undue hardship for the employer. This means that if you become disabled and require assistance to perform your job, your employer must work with you to find a reasonable accommodation that allows you to continue working.

However, if your disability is such that it makes it impossible for you to perform your job even with a reasonable accommodation, your employer may be able to terminate your employment under the terms of your executive employment agreement. This is where it`s important to read your agreement carefully and understand what it says about termination for disability.

Many executive employment agreements include a provision that allows for termination for disability. This provision typically sets out the conditions under which the agreement can be terminated in the event of disability, as well as the notice and compensation requirements for such termination. For example, the provision may require that the employee provide notice of the disability and that the employer pay a certain amount of compensation or severance in the event of termination.

It`s important to understand that the termination for disability provision in your executive employment agreement must comply with the ADA and other applicable laws. For example, the provision cannot require the employee to forfeit benefits or compensation that the employee has earned prior to the termination date. Additionally, the provision must be drafted in a way that does not discriminate against employees with disabilities.

In summary, if you are an executive with an employment agreement, it`s important to understand what your agreement says about termination for disability. This provision is an important safeguard for both the employer and the employee, but it must be drafted carefully to comply with applicable laws and protect the rights of employees with disabilities. If you have any questions or concerns about your executive employment agreement, it`s always a good idea to consult with an attorney who specializes in employment law.