Termination agreements can be a blessing for employees who want to steer their careers in a new direction. The most important fact to remember is that a termination agreement is a contract. If you sign a contract and do not read some or all of the terms, you are still required to comply with the entire contract.29 Severance pay is usually included in a «severance package». The term refers to the wages and benefits to which a worker is entitled at the end of the work. Some of these benefits may include payment for unpaid leave, unemployment benefits, stock option payments, and health insurance coverage. A worker who has been induced to sign a severance pay agreement by unlawful influence may sometimes resign.23 Termination agreements are usually concluded after the employee`s dismissal or at the time of dismissal, in which case the law would not apply. However, employers sometimes negotiate, before the separation of an employee, a severance pay agreement to develop a voluntary separation. Under the law, it is not certain that this will be considered an exemption «as a condition of continued employment.» Therefore, these settlement agreements should comply with the exception of «negotiated agreements» in accordance with the law, which means that «the agreement is voluntary, intentional and informed, offers the employee a countervalue and the employee is terminated and has the opportunity to hire a lawyer or be represented by a lawyer.» This provision must appear verbatim in any damages exemption in California and there must be additional language clearly indicating that the worker waives this provision and intends to release all known or unknown claims at the time of performance of the termination agreement. James J. McDonald Jr., J.D., SHRM-SCP, SPHR, is a managing partner in the irvine, California office of labor law firm Fisher & Phillips LLP. His practice includes trials, arbitration proceedings and appeals against labour law claims.
He also has more than 25 years of experience advising California employers on all aspects of labor law, strategic personnel matters, and complaint and complaint prevention. He received his bachelor`s degree from the New College of Florida and his law degree laude from Georgetown University. Consider the following questions if you are trying to decide whether to negotiate your severance pay: Severance pay refers to a payment made by an employer to a former employee. . . .