Legal Question in Employment Law in California
Severance Pay
The employer has a written policy that clearly states severance pay is paid at one (1) week per year of employment ONLY in the event of a reduction in force which results in an involuntary layoff.
Employee has worked for 6 months and is requesting 2 months severance. Is the employer within its rights to refuse the request?
Additional info: employee had a heart attack and was in the hospital 5 days preceding the last day of employment.
2 Answers from Attorneys
Re: Severance Pay
Officially, the employer has the right to refuse whatever privileges are not provided/promised in the policy. However, the whole purpose of severance is assuring that the employee will not sue (exchange severance payment for release of all claims). A person who is about to be terminated shortly after having a heart attack might use this as a leverage to claim disability discrimination, etc... and thus, his release might be more valuable and might be worth paying for more to avoid the risk of being sued and losing a disability discrimination action (if there are other facts that make his termination suspicious from the legal perspective).
Thanks,
Arkady Itkin
www.sanfranciscoemploymentlawfirm.com
Re: Severance Pay
Of course. The risk is the employee bringing legal claims of 'wrongful termination' or 'discrimination' even if not true or provable. Settlement by severance would remove that risk. Your call.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
