Legal Question in Employment Law in California

severance pay

If the company had a known (oral) practice of providing severance pay in the amount of $1,000 for every year worked and did just that until, after a certain point in the lay off process, decided to no longer honor that provision; can the company justify this change of practice legally?


Asked on 2/18/09, 12:52 pm

1 Answer from Attorneys
Arkady Itkin Law Office of Arkady Itkin

Re: severance pay

Hello.

Unless paying out severances is a formal practice, outline in the company's policies (which it almost never is) it's a courtesy to the employees, as there is no law that requires an employer to pay out severance compensation.

Known oral practice is not binding enough to create a contract, so the company is likely at full liberty to retract their severance policy.

Thanks,

Arkady Itkin

San Francisco / Sacramento Employment Lawyer

http://www.arkadylaw.com

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Answered on 2/18/09, 5:30 pm


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