Legal Question in Employment Law in California

Severance Pay Precedent
After nearly six years, yesterday was my last day of employment. I had given a notice of one month, and upon receiving my final check, I was told that my employer has decided to no longer provide severance pay, a decision that was made as my employer was putting together my final check. There is no written agreement nor is it stated in our policy manual that we have the right to severance pay, however, my employer had set a precedent that employees in good standing who leave the company receive severance pay in the amount of one weeks pay for every year with the company. Shortly before I had given my notice, a co-worker of mine who had been with the company for only three years, in a position lower than mine, was given three weeks pay for his three years with the company. This was not the only case of severance pay being provided, just the most recent as it was a common practice in our company. I made my decision to leave the company when I did based upon the knowledge that I would be receiving six weeks of pay, and had I have known otherwise, I would have stayed on longer. Can my former employer make that decision without giving me any notice? Do I have any legal right to that severance pay?

Asked on 5/01/03, 6:40 pm

2 Answers from Attorneys

Michael Kirschbaum Law Offices of Michael R. Kirschbaum

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Re: Severance Pay Precedent

It is important to understand that there is no law that requires employers to pay severance. When employers establish a severance policy, they have the right to set the terms and conditions upon which severance is payable. Many typical severance plans do not pay severance to employees who resign. It is usually to ease the transition for those who are laid off due to cost cutting or related reasons.

Citing isolated examples of prior severance payments is not helpful, unless you are aware of the facts and circumstances of those cases. Even more helpful would be having a written plan.

If you believe the company has violated an established severance plan by refusing to pay it to you, you should consult with a labor law attorney in your area to review all of the facts.

Answered on 5/05/03, 11:29 am

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