When the relationship between employee and employer ends, it is often the practice of employers to offer a Severance Agreement to the employment. Because most employment relationships in California are “at will” — meaning the employment can be ended by either side, for any non-illegal reason — there is no statutory right to receive severance pay from a private employer.

However, sometimes a private employer will still offer a “severance package” for a number of reasons. Perhaps the employer is concerned about future litigation or claims being brought by the employee. Perhaps the employer wishes to reward many years of faithful service with a lump-sum payment. The reasons can range the entire spectrum, from altruistic to more nefarious. A severance package is usually comprised of an agreement to pay money to the employee, in exchange for that employee releasing his or her right to sue the company in the future, and it is usually documented in a Severance Agreement.

Negotiating the terms and conditions of a severance agreement is important for protecting your rights and interests. In some cases, companies will attempt to attach restrictions to severance packages that impact a person’s ability to find new work, continue their health care coverage, or even talk about certain things that occurred during the employment.

Before agreeing to sign a Severance Package, consulting with an experienced employment law attorney can alert you to what an employer can and cannot do, and how you can protect your interests. At Palay Hefelfinger APC, our experienced employment law attorneys can review and analyze Severance Agreements, and advise you on what to accept or when to negotiate further.

If you are currently attempting to review or negotiate a Severance Agreement, contact our lawyers and learn how we can help you. Call 805-628-8220 today!