You can also benefit from more severance pay if your employer knows you know you may be entitled against you for unlawful termination or other misconduct. The rest of this article takes a closer look at california`s severance agreement law. When you have been asked to sign a severance agreement, it is often a good idea to let an occupational lawyer first take a look. A staff member who has been forced to sign a termination agreement by undue influence may sometimes revoke the contract.23 If a compensation agreement requires you to waive a right of action, you should consider consulting a lawyer before signing. A lawyer can tell you if the redundancy agreement is legal and, if so, what you will give up. Restrictions on severance agreements. While the release of the provision may include a non-recourse agreement in a termination agreement, it should not prohibit the employee from filing a discrimination complaint with the U.S. Equal Employ Opportunity Commission or the California Department of Fair Employ Employment Employment and Housing. Similarly, the Securities and Exchange Commission opposes provisions prohibiting employees from reporting securities violations to the agency. Therefore, in order to avoid an attack by one of these agencies on a severance agreement, a provision should contain a language stating that the agreement does not prohibit the employee from laying charges with a law enforcement agency or reporting any violation of the law, but that the employee waives any monetary policy recovery by the employer as a result of such a charge or complaint.
Skrbina v. Fleming Cos. (1996) 45 Cal.App.4th 1353, 1358 [on a situation in which a staff member signed a written release agreement in exchange for US$8,000 in severance pay.↥ To compensate both parties, the parties should approve a separation agreement stipulating that no party is guilty of wrongdoing and that the employee`s dismissal is solely based on their actions. In addition, in the case of mandatory severance pay for staff, payments and amounts should be indicated in this agreement. An employer is only required to award you severance pay if you have a prior agreement to obtain it. For example, there may be a termination clause in your pre-employment contract, or your union contract requires it.