Legal Question in Employment Law in California
Company told employees they would be closing doors by oct. 2nd and that we would be receiving serverance pay based years of service. They have made anouncements in newspapers and have shut down web site. Now we are hearing that they have an interested party in buying company. Where does this leave employees? A) with regard to severance pay and 2) If this new owner does take over and we are offered positions at a lower rate of pay and we turn it down due to change of pay. Are we still able to collect unemployment. Please explain how this all works.
1 Answer from Attorneys
It is important to understand that the law does not require employers pay severance. It is purely discretionary, unless there is a fixed plan in place, which few companies have these days. So, when an employer offers severance, they may dictate whatever terms and conditions they deem appropriate. Sometimes the terms are negotiable...sometimes not.
They are usually reduced to writing, which you will have to sign. They also usually include a release of claims against the company. These written terms will control the conditions upon which you may receive your severance. If you do not like the terms offered, try to negotiate with the employer. If they refuse to budge, you probably have little choice but to accept the terms or refuse it altogether. It's up to you.
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