Skrbina v. Fleming Cos. (1996) 45 Cal.App.4th 1353, 1358 [Examination of a situation in which an employee signed a written exemption agreement in exchange for severance pay in the amount of $8,000.] A severance pay agreement is often unenforceable when it has been signed on the basis of fraudulent misrepresentation by the employer.17 See Civ Code, § 1541 [« An obligation is extinguished by an authorization granted to the debtor by the creditor, in the event of new consideration or in writing, with or without new consideration ».]; Skrbina v. Fleming Cos. (1996) 45 Cal.App.4th 1353, 1366; Shaw v. City of Sacramento (9th Cir. 2001) 250 F.3d 1289. Whatever your employer says to you, you don`t have to sign a termination agreement and you don`t have to do it right away. You still have the right to consult a lawyer, even if you are sure you understand the conditions. Together, these new California laws are expected to trigger a thorough review of severance pay and other settlement agreements.
The language may need to be added, revised or omitted to comply with the new laws mentioned above. Please let us know if we can help you. It must contain the language of section 1542. California Civil Code Section 1542 states that « general release does not extend to claims that the creditor, at the time of enforcement of the release, does not know or suspect exists in his favor, which, when known to him, must have had a significant impact on his agreement with the debtor, was amended, Section 1542 of the Civil Code, to make minor changes to the language wording that should be cited in liberation agreements. Unless an release agreement refers to section 1542 and provides that the employee waives unknown rights, employees may retain the right to assert rights that they did not know existed when the authorization was signed. Severance pay is usually taken after the dismissal of the employee 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. » Then look at what you are offered. It may be worth it for you to get a high severance pay in exchange for a waiver of your right to seek justice.
But you don`t need to simply accept what your employer offers. Often, termination agreements can be negotiated, especially if you have a legal right against your employer. Most workers do not have a departure when their employment relationship ends. However, since severance pay agreements can help reduce an employer`s legal liability, many companies offer severance pay, whether or not they are required to do so. . . .