Severance Agreement And General Release California
Regardless of what your employer tells you, you don`t have to sign a severance contract and you don`t have to do it immediately. You still have the right to consult a lawyer, even if you are sure to understand the conditions. More generous severance pay may include two weeks` salary for each year the employee worked for the company. Some severance pay may also include an offer of one month`s salary for each year of employment. The employer may also include benefits other than wages, such as. B proportional premiums or health insurance. [For you, the employee, lump sums are preferable. Employers will sometimes find excuses to stop the payments by claiming that you are violating a clause in the severance agreement.] It must go beyond what is the employee`s responsibility. For a termination agreement to be enforceable in California, the worker must have a value beyond what he or she is already entitled to. If an employee is liable for a vacation allowance or bonus, the payment of these sums will not offer legal consideration through a discharge of the debt. The valid consideration generally consists of severance pay (if the employee is not yet entitled to severance pay under an employment contract, a redundancy plan or an enterprise policy), payment of COBRA`s duration of continuation bonuses, assistance with outsourcing or a combination of them. Severance agreements must be concluded on a voluntary basis.
As a general rule, workers are offered money that an employer is not legally able to pay to encourage the signing of the contract. It must contain the language section 1542. Section 1542 of the California Civil Code states that “general release does not apply to claims which the creditor, at the time of the execution of the release, does not know or is suspected that they exist in his favour and that they, if known to him, have had a significant effect on his settlement with the debtor.” [This 21-day period (or 45 days if a significant redundancy is under review] may be cancelled by the worker and the employer cannot withdraw the offer for that 21 (or 45) day period).