Sign California Banking Separation Agreement Mobile

Industry sign banking california separation agreement mobile

although I'm Anthony Zoller and this is the California Employment Law report this is the third video in a series of three videos about terminations and considerations that California should California employers should be taking into account when they're going through a separation with an employee this video is going to focus on seven severance agreements one when is the severance agreement a good idea in California and two what are some of the common terms found in severance agreements okay so first off when is a severance agreement appropriate in California so California is an at-will state so that means they can that employers and employees don't have to give any notice for a termination or if they resigned the employer can terminate employees at any point in time with or without notice and likewise employees can quit with or without notice at any time and so severance generally is not required under California law and the idea behind severance providing a payment to an employee is that you're giving some type of consideration to the employee in exchange for obtaining a release from the employee so that the employee is not going to sue the employer for anything that occurred during the working relationship the idea is just that the employer is giving some value to the employee that they don't have to give to the employee and exchange the employees releasing any rights to bring any disputes up down the road about the employment relationship so you know a lot of employers consider giving severance to just long term loyal employees that are separating on good terms just as a benefit and recognition to the value that they brought to the company so normally that's a payment of a couple of weeks of salary or or some other type of consideration and now in that case I always recommend if you are giving the employees some type of consideration some value it's just good to get a release in exchange for that and then the other area where severance agreements come up is if there is a potential dispute with the employee it's actually is a dispute the employee brought it up or it may become a dispute that's a good time for employers to approach the employee and see if there could be some type of severance in exchange for release to be obtained from that employee to avoid any future litigation now what are some common terms found in severance agreements one is a general release so they're releasing all types of claims that could have arose during the employment relationship and in California it's also employed and important that the employer obtain a it's called a 1542 waiver and this waiver is basically a release of all known and unknown claims and under California law for that waiver to be effective it has to be set out in the agreement so it's important that employers actually set that 1542 waiver out in the severance agreement and that it's done properly also employers sometimes have a confidentiality provision in the sevens agreement so that the employee doesn't tell other employees how much they received as part of severance it could create some ill-will when some employees are getting more severance than other employees also employers should have no admission of liability in the agreement and then also consider about whether there should be an agreement with the employee that there is no get'em there will be no future employment so if the employee comes back and applies for a position with the company that they don't expect that the employee the employer has to consider them to return to the company and also sometimes there's a non-disparagement clause or there can be provision in there setting out exactly what kind of reference the employer is going to give to the employee in the future for other potential employers and then finally sometimes the company wants to have a confidentiality provision and and a return of company property and company information provision in the severance agreement as well so it's really dependent upon the situation on how detailed the severance agreement needs to be or should be generally I like to have them shorter if it's a clean separation the employees leaving on good terms but you still want to obtain a release it could be a very simple two-page form or if it's suddenly a dispute that the employee has with the company it needs to be a longer form addressing all these concerns so that's a brief overview again documents the links of the documents are down in the description below if you have any questions please feel free to email me please subscribe to the channel so if you're interested in obtaining the termination checklist that I've put together for California employers please email me and I can give you the checklist as well thanks