Which Is Not a Good Method for Preventing Legal Complications

question 33

Multiple Choice

Which is not a good method for preventing legal complications when you must lay off or fire employees?

• A) Document your reasons for firing employees to prove that they did not perform their duties correctly.
• B) Have employees sign an agreement when they're hired saying they will not sue if they are ever laid off.
• C) Provide severance, which is continued salary for a limited time, and make serious efforts to help laid-off employees find a new job.
• D) Have appropriate employees sign a no-compete agreement.

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Definitions:

Creditors

Individuals or institutions that lend money or extend credit to others.

Liabilities

Liabilities are financial obligations or debts that a company owes to external parties, which must be settled over time through the transfer of economic benefits including money, goods, or services.