California Severance Agreements
A severance package is not just a thank you for the services provided. Most companies require employees to sign a possible release of rights and agree not to make the company too poorly muzzled when severance pay is made. Unsurprisingly, severance pay is a way for companies to protect themselves. However, a fair severance package is a win-win situation for all parties involved. A severance package can be addressed and discussed: Many severance agreements offer only one nominal payment. This may be sufficient if the worker has no real right to oppose an employer. On the other hand, if the contract obliges the worker to forego a potentially large debt, a higher severance pay may be justified. Employees should seek legal advice to help them assess the pros and cons of signing a separation contract. While employers can reward loyal services by offering severance pay without asking the outgoing employee to sign a severance agreement, employers often offer severance agreements because it is in their own interest. State law does not require employers to pay severance pay in California and, in general, there is no defined standard for severance pay that employers can offer, unless it is a company policy or a contract. Many employers offer severance pay to encourage workers to release all final rights against them. The severance pay for executives and senior managers is generally higher than payments to non-executives.