Legal Question in Employment Law in California

My friend has recently been laid-off by a company, without offering any severance packages in the notification. I wonder if there is a standard for giving out Severance package to laid-off employees in California?

1. Are companies obligated to offer severance packages at all?

2. Has severance packages somehow reflected in the labor contract?

3. If yes, is there a standard amount of severance packages given? Assuming the company is in solar and energy industry.

4. If the company hasn't offer any severance packages for employees being laid-off, is it possible for them to negotiate for one, and how much is reasonable to negotiate?

Thanks in advance for your help! Look forward to hearing back.


Asked on 5/09/16, 12:11 am

1 Answer from Attorneys

1. No.

2. I can't make out what you are asking.

3. No.

4. Negotiation implies both sides have something to offer the other side. Since the employer is under no obligation to provide a severance package, what would the employee offer in exchange for one? Many employers offer severance packages in exchange for such things as help winding up work before the employee leaves, rather than just quitting right away, or giving up some legal right an employee might have, such as under a contract. They also do it sometimes to keep the employees who are not being laid off from looking for another job. If there are lay-offs and no severance, many employees who are not laid off start looking for a new job immediately, so as not to be caught in another round of layoffs and no severance to protect them. But none of that gives an employer an obligation to give any severance.

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Answered on 5/09/16, 10:36 am


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