Legal Question in Employment Law in California
Severance and Release of Claims Agreement
I was recently terminated by my employer due to job elimination/downsizing. I have since received a Separation and General Release of Claims document that I am to sign and return before getting 7 weeks of severance pay. In this agreement it states that I am releasing the company from any and all claims,actions, charges, complaints, grievances and causes of action what ever the nature. I wanted to know if in signing this agreement am I giving up my right to collect unemployment benefits? And if I am entitled to unemployment will I not get benefits for 7 weeks (the amount of pay I am getting) or will it only count against me for one unemployment check being as though it will be payed in one lump sum?
2 Answers from Attorneys
Re: Severance and Release of Claims Agreement
Severance agreements are usually negotiable. See if they'll write into it that the company agrees not to oppose your application for unemployment benefits. By signing the agreement, you will not be able to sue for anything that happened in connection with your job or termination.
Re: Severance and Release of Claims Agreement
It has been my experience that employees who get a lump sum severance, still qualify for unemployment benefits. If the severance is in the form of a salary continuation, you may not qualify until the severance runs out. In any case, you will be required to report the income to EDD. Failure to do so could cause greater problems for you.
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