Give the employee plenty of time to decide whether to sign. It is reasonable for an employee to take a week or two in deciding whether to give up the right to sue you. You might even suggest that the employee consult with a lawyer to review the agreement. Avoid any hint of coercion. An employee's decision to sign a release must be voluntary, or courts will not enforce the release.
Special rules apply to older workers.
This handy reference covers the firing process from start to finish. You have to be ready with that final paycheck soon after your employees quit or are fired. In most circumstances, employers are not legally required to pay severance to fired employees. But you may want to consider it anyway. This handy reference covers the firing process from start to finish.