Whether you are an employer or employee, representation in negotiating or issuing a severance agreement is essential.  Many contain significant releases of liability and requirements of confidentiality.  Making these clauses enforceable and fair, if you are an employee, can be easily missed if not drafted by a professional.

Generally, California does not require an employer to provide severance pay.  The trend now is that most employers who have a severance programs do not give a guarantee for terminated employees to receive a severance.
For example, a general release of liability does require specific language:

7. Waiver of Unknown Claims. Smith has read Section 1542 of the Civil Code of l the State of California, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

Smith understands that Section 1542 gives him the right not to release existing claims of which he is presently unaware, unless he voluntarily chooses to waive this right. Having been so apprised, he nevertheless hereby voluntarily elects to, and does, waive the rights described in Section 1542, and elects to assume all risks for claims that now exist in his favor, known or unknown, from the subject of this Agreement.

This is just one point to consider.  Enforceability of severance policies  often becomes an issue for both employer or employees where the employer cannot afford to provide severance as they did in past programs.

If you need a severance agreement drafted or an employee that needs a review of a severance agreement, an attorney’s quick assistance can truly go a long way in preventing unnecessary pitfalls.