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Regardless of what your employer tells you, you don`t have to sign a severance contract and you don`t have to do it immediately. You still have the right to consult a lawyer, even if you are sure to understand the conditions. As a general rule, severance agreements are valid and validated by the courts as long as the contract has been concluded on a voluntary basis and the conditions are legal. 4 This is also the case when it appears that the employer gets the best deal. Keep in mind that almost everything is negotiable in a severance package in California. As with an employee`s agreement to waive legal action, a severance agreement that limits the employee`s post-employment behaviour is often confirmed in court. An employer terminates an employee and asks him to sign a severance agreement which stipulates that she will not sue the employer for irregular dismissal. In exchange, the employer pays him $10,000. A compensation agreement involving the release of rights is a good option to take into account when an employee should be fired, but there is little or no prior documentation of misconduct or performance problems. If the employee signs the severance agreement, the risk of legal action is almost completely excluded. A valid discharge of claims must be informed and voluntary to be enforceable. It is therefore important that severance agreements be drafted, as far as possible, in simple language that the worker can understand. A severance agreement that lasts 10 pages or more and contains a dense legal is not ideal and may indeed be vulnerable to attack if an outgoing employee contemplates having signed the agreement.

In addition, a compensation agreement must meet additional requirements in order to be applicable. 21 It occurs when an employer exerts undue pressure on an employee to sign a severance contract that exploits the employee`s mental, moral or emotional weaknesses. 22 severance contracts are usually concluded after the employee`s termination or at the time of termination, but the status would not apply. However, employers sometimes negotiate a termination agreement before a worker`s separation in order to develop a voluntary separation. On the basis of status, it is not certain that this is an authorization “as a condition for maintaining employment”. Therefore, these transaction agreements should be consistent with the exception of the “negotiated transaction agreements” provided for by law, which means that “the agreement is voluntary, intentional and informed, provides a balance of value for the employee and the employee is dismissed and has the option of retaining a lawyer or being represented by a lawyer.” Does your California package cover the basics? Even if each package is different, it should at least include: not all companies offer severance pay and California labour laws do not impose a legal obligation on them.