[This is prescribed by law, including certain provisions of the Federal Employment Discrimination Act (ADEA) that require that these benefits be taken into account 21 or 45 days before signing and be revoked 7 days after signing if the separated employee is 40 years of age or older. This ADEA law also requires a statement in the agreement that the employee can consult a lawyer to verify the agreement.] Section 12964.5 was added to the Fair Employment and Housing Act (FEHA), which made an employer an illegal employment practice, in exchange for a raise or bonus, or as a condition of employment or job maintenance, to require a worker to sign the release of a right to feha (for example.B. Rights to harassment or discrimination on the basis of age, for example, race, ethnicity, gender or disability, among other characteristics), unless the agreement is “negotiated” within the meaning of the law. While employers can reward loyal service by paying compensation without requiring the outgoing employee to sign a severance pay agreement, employers often offer severance pay agreements because it is in their own interest. State law does not require employers to prescribe severance pay in California, and generally speaking, there is no set standard for severance pay that employers can offer unless required by a company directive or contract. Many employers offer severance pay to encourage employees to release all their rights against them. [This clause is unusual, but I see it occasionally. It gives the employer the apparent unilateral power to suspend payments or claim reimbursement of the full severance pay if you denigrate the company, disclose confidential information about the company, or have not returned ownership of the business. This trick can be illegal if the harm to the employer is minimal or speculative.] Beyond these requirements, there may be other legal restrictions.
For example, there are special schemes for redundancy payments that cover rights to age discrimination. Severance pay for executives and executives is generally higher than the payments available to non-managerial employees. If you`re still not sure whether to hire a lawyer, when reviewing your severance pay agreement, consider the following questions: Ultimately, negotiating a favorable indemnity agreement is like negotiating another contract: it`s an art. Here, a lawyer can help you a lot, especially if you have little experience in negotiation.