Employers of workers within the State of California are not required to pay severance pay upon termination of employment unless there is a written contract requiring it or sometimes if the employer has a policy of paying severance pay to employees within the same job category of a worker whose employment will be or has been terminated by the employer.
If a written contract exists and requires payment of severance pay, the employer will be bound by the terms of the contract.
Oftentimes, employers choose to pay severance pay even though they have no contractual duty to do so. The reasons are (1) that they want to pay the employee some money to help the employee during a period of unemployment; (2) they want to thank the employer for her/his services and, importantly, (3) they want to have the employee sign a release of all claims whether known or unknown so that they don’t’ get sued by the employee.
Not all claims can be released. Examples are a claim for unemployment compensation through the EDD, a claim for age discrimination, unless the severance agreement states that the employee has 21 days to consider the offer and 7 days to revoke his/her signature/agreement after signing.
It is wise to have an employment law attorney read and consult with an employee BEFORE signing a severance agreement. If the agreement is signed and it contains a properly worded release clause, it may be impossible for the employee to file a claim, sue, etc. for a variety of different claims against the employer. Similarly, it is very wise to have an employment law attorney write the severance agreement to make sure that the employee does, in fact, release of his/her potential claims against the employer.
Oftentimes, an employment law attorney can negotiate a higher severance pay if the employee has any valid potential claims against the employer, such as unlawful discrimination, harassment, unpaid wages, etc. If you are an employee, call Attorney, Kristine S. Karila for a free initial phone consultation. (949) 481-6909. If you are an employer, Ms. Karila can draft a solid severance agreement for you and advise you regarding these matters. Ms. Karila’s fees are $300.00 per hour and may be able to draft a severance agreement for a reasonable flat fee. Call to discuss. (949) 481-6909.
Copyright 2015 - Law Office of Kristine S. Karila
If a written contract exists and requires payment of severance pay, the employer will be bound by the terms of the contract.
Oftentimes, employers choose to pay severance pay even though they have no contractual duty to do so. The reasons are (1) that they want to pay the employee some money to help the employee during a period of unemployment; (2) they want to thank the employer for her/his services and, importantly, (3) they want to have the employee sign a release of all claims whether known or unknown so that they don’t’ get sued by the employee.
Not all claims can be released. Examples are a claim for unemployment compensation through the EDD, a claim for age discrimination, unless the severance agreement states that the employee has 21 days to consider the offer and 7 days to revoke his/her signature/agreement after signing.
It is wise to have an employment law attorney read and consult with an employee BEFORE signing a severance agreement. If the agreement is signed and it contains a properly worded release clause, it may be impossible for the employee to file a claim, sue, etc. for a variety of different claims against the employer. Similarly, it is very wise to have an employment law attorney write the severance agreement to make sure that the employee does, in fact, release of his/her potential claims against the employer.
Oftentimes, an employment law attorney can negotiate a higher severance pay if the employee has any valid potential claims against the employer, such as unlawful discrimination, harassment, unpaid wages, etc. If you are an employee, call Attorney, Kristine S. Karila for a free initial phone consultation. (949) 481-6909. If you are an employer, Ms. Karila can draft a solid severance agreement for you and advise you regarding these matters. Ms. Karila’s fees are $300.00 per hour and may be able to draft a severance agreement for a reasonable flat fee. Call to discuss. (949) 481-6909.
Copyright 2015 - Law Office of Kristine S. Karila
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