A sudden job loss can leave people scrambling to pay their bills. The job market can be unpredictable, and even those who diligently seek new employment could spend weeks between positions after a termination.
Frequently, employees starting new jobs negotiate contract terms that include severance packages to protect themselves and their dependents from this exact situation. A severance package provides financial support when a person loses their job and must start looking for new employment. Recently terminated workers denied their severance packages may need support to enforce their employment contracts.
Severance pay isn’t automatic
Some people mistakenly believe that they have a right to severance if they have worked for a business for years. However, severance packages are typically the product of contractual obligations.
California state laws do not mandate employer-funded severance packages. Employers are under no obligation to provide them. Still, businesses do need to uphold the contracts that they execute with workers, which may include requirements for severance packages after a layoff or termination with minimal notice.
In some cases, severance agreements may have clauses allowing companies to withhold a severance package in qualifying circumstances. Reviewing an employment contract and official communications with management or human resources during the termination process can be beneficial for those denied a severance package. People can sometimes hold their former employers accountable for failing to fulfill contractual obligations.
The team at Licata & Yeremenko, APLC has experience navigating complex employment law issues, including pay disputes and contract breaches. Workers struggling to secure their contractual severance pay can contact our firm to discuss the matter by clicking here or calling 818-783-5757.