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There is no legal requirement under California law that employers provide severance pay to an employee upon termination of employment. Employees should refer to their employer's policy with respect to severance pay.

So, in most cases, what you get is what you negotiate. You can expect that California severance agreements will have a few key terms: the amount and timing of severance payment and a release of claims (including the so-called ?California Civil Code 1542 waiver?). Most other provisions are subject to negotiation.

If this is your first time dealing with job loss, you might think your only option is to accept the severance offer as-is. But as with a new job contract, it's in your best interest to negotiate the terms of your departure.

In most cases, employers are not required to provide employees with severance packages. Severance agreements are contracts between private parties and are governed by California contract law. There is no law in California requiring employers to offer severance packages.

Some employers choose to offer severance pay to employees who are terminated, either involuntarily or voluntarily. The primary reasons for offering a severance package are to soften the blow of an involuntary termination and to avoid future lawsuits by having the employee sign a release in exchange for the severance.

Many severance packages in California use a formula such as one week's pay for every year of service, or more generous packages might payout a month's pay for every year. Other California packages are based on lump-sum payments. The parties are free to use any formula or payout any amount.

If the severance pay is not subject to mitigation, you do not have to return the severance pay if you find new work during the severance period. If the severance pay is subject to mitigation, you stop receiving severance pay when you find new work.

Severance packages can include forms of compensation like salary continuation, payment for unused vacation or sick time, extended health coverage and other benefits. The details are usually in an employment contract.

The severance pay offered is typically one to two weeks for every year worked, but it can be more. If the job loss will create an economic hardship, discuss this with your (former) employer. The general practice is to try to get four weeks of severance pay for each year worked.

If you are serious about maximizing your opportunity for a better severance package, you should consider hiring an experienced severance attorney to review your severance agreement, evaluate your employment history and help you negotiate your severance package.