Severance Pay and General Layoff Protection
Introduction
Severance pay, also referred to as a General release, separation agreement, Termination agreement and Exit agreements is money paid to an employee who has been laid off, resigned or fired by an employer. The main purpose of severance payment is for employers to give employees instant-though slightly small- payment for them to surrender their legal abrupt termination rights. On receiving the money, an employee accepts to give up all liability relating to employment law violation that relate to the employment relationship. Such an employee is bound by the agreement not to sue his or her employment and demand for full termination benefits as stipulated by law.
General layoff protection in California
According to Chapter 4, Part 4, under section 1400-1408 of the Californian Labor Code, Workers Adjustment and Retraining Notification (WARN)safeguards employees, communities, their families by stipulating that employers issue a 60-day notice to the concerned employees as well as state and local representatives to before mass layoff or plant closing. The idea is advance notice allows employees and their family members to adjust and transition to the loss of employment by either retraining or acquire new skills to compete favorably in the job market.
So, why do employers like severance agreement?
A work severance agreement works in the favor of the employers. They use exceedingly wide language while drafting the agreement to protect themselves from any future legal liability or lawsuit. When an employer successfully convince you to sign the agreement, and in the process surrender you legal rights, including the right to take any other legal action, he or she saves a lot of money. They avoid paying fines for violation of the any labor law.
Should you sign it?
Even before considering whether you should sign or not, be sure to read it carefully and understand and every item in the agreement. After reading and understanding it, weigh carefully the consequences and its fairness. It is always advisable to consult a seasoned employment attorney. The attorney will help you understand if your rights are violated in any way. With such a valuable knowledge you will be in a better position to decide to accept or reject the severance agreement.
What claims cannot be released?
A California employer cannot ask you to waiver money or benefits relating to;
- Minimum wage
- Overtime
- Unemployment insurance benefits
- Worker’s compensation benefits
Any severance agreement that releases any of the above claims is not enforceable.
Conclusion
A severance agreement as well as the amount you are offered by your employer is totally negotiable. If you feel you deserve more than you are offered, feel free to demand more in exchange of the legal rights you are giving off. Note, though, that deciding whether you should accept or reject Termination agreement is not an easy choice. Take your time. Weight cautiously the advantages of instant payment against the possibility of later on losing a bigger employment lawsuit recovery.
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