There are many factors that make employers to cut down on their employees. In most cases, employers usually conduct layoff if the company is making huge losses. In most states, employment is usually at will. This means that you can decide to quit your job or the company can fire you even without a cause. Although the employer is not prohibited to lay off workers if they are not able to sustain them, there are some cases where employer usually conduct illegal layoff of employees. All employees have the right to be notified in advance by the employer in case the company plans to lay them off. If the employer fails to give proper notice, then employees have the right to sue the company and seek compensation for damages. It is a right that has been given to employees by the Federal Workers Adjustment and Retraining Notification (WARN).

WARN law is implemented in many states including California. However, employers in California are not required to continue giving employees health benefits or pay small severance. It only requires them to give advance notice prior to a layoff.

Discrimination laws

Have you been laid off because of discrimination? The biggest challenge that employees have is being to prove that their layoff was discriminatory. For instance, it is not good enough to say that your layoff was discriminatory if the evidence that you provide is that you were laid off because the company could not afford your high salary. However if you can prove beyond reasonable doubt that you were discriminated, you can file a lawsuit and sue the employer. This is because the federal law prohibits discrimination against employees based on age, sex, race or religion.

Required notice

If a company is planning to conduct massive layoff or if it is planning to close, the employees who will be affected are required to be notified 60 days in advance. If employees are in union, then the employer can communicate to their officials to inform them about the matter. Their representatives will then pass the information to the affected employees. The notice given must comply with both federal and Californian law. This include providing detailed information of the specifics of the layoff. For instance, the employer is supposed specify whether the layoff will be permanent or temporary, the expected date of layoff, whether the employee will have bumping right as well as when they will receive letter of termination.

Employers who conduct illegal layoffs or fail to comply with WARN and federal law may be ordered by the court to compensated affected workers for the damage that they have caused. Employers will also be ordered to pay all court costs and attorney fee that employees incurred when suing the company. Employees who don’t give proper notice to the government can also be fined.

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Introduction

Severance pay, also referred to as a General release, separation agreement, Termination agreement and Exit agreements is money paid to an employee who has been laid off, resigned or fired by an employer. The main purpose of severance payment is for employers to give employees instant-though slightly small- payment for them to surrender their legal abrupt termination rights. On receiving the money, an employee accepts to give up all liability relating to employment law violation that relate to the employment relationship. Such an employee is bound by the agreement not to sue his or her employment and demand for full termination benefits as stipulated by law.

General layoff protection in California

According to Chapter 4, Part 4, under section 1400-1408 of the Californian Labor Code, Workers Adjustment and Retraining Notification (WARN)safeguards employees, communities, their families by stipulating that employers issue a 60-day notice to the concerned employees as well as state and local representatives to before mass layoff or plant closing. The idea is advance notice allows employees and their family members to adjust and transition to the loss of employment by either retraining or acquire new skills to compete favorably in the job market.

So, why do employers like severance agreement?

A work severance agreement works in the favor of the employers. They use exceedingly wide language while drafting the agreement to protect themselves from any future legal liability or lawsuit. When an employer successfully convince you to sign the agreement, and in the process surrender you legal rights, including the right to take any other legal action, he or she saves a lot of money. They avoid paying fines for violation of the any labor law.

Should you sign it?

Even before considering whether you should sign or not, be sure to read it carefully and understand and every item in the agreement. After reading and understanding it, weigh carefully the consequences and its fairness. It is always advisable to consult a seasoned employment attorney. The attorney will help you understand if your rights are violated in any way. With such a valuable knowledge you will be in a better position to decide to accept or reject the severance agreement.

What claims cannot be released?

A California employer cannot ask you to waiver money or benefits relating to;

• Minimum wage
• Overtime
• Unemployment insurance benefits
• Worker’s compensation benefits

Any severance agreement that releases any of the above claims is not enforceable.

Conclusion

A severance agreement as well as the amount you are offered by your employer is totally negotiable. If you feel you deserve more than you are offered, feel free to demand more in exchange of the legal rights you are giving off. Note, though, that deciding whether you should accept or reject Termination agreement is not an easy choice. Take your time. Weight cautiously the advantages of instant payment against the possibility of later on losing a bigger employment lawsuit recovery.

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