Severance Pay Delays: How Long Does It Take to Receive Severance Pay?

Severance pay can serve as a lifeline for employees during times of transition and provide financial support to cushion the blow of job loss. At the same time, the journey from termination to the receipt of severance pay is often shrouded in uncertainty, as the timeline for disbursement of severance pay can be impacted by several factors – ranging from contractual terms and conditions to administrative processes, company policies, and negotiations.

In this article, we answer some of the most frequently asked questions about the time frame for receiving severance package in California and the factors that can impact it, and the steps you can take if there is a delay in receiving severance pay.

👉Also Read: Understanding Severance Agreements: Insights from Hershey Law

When Will I Get My Severance Pay?

The short answer is – it depends on a number of factors. In some cases, you might receive your severance pay right after you are terminated. In some cases, it might take a few weeks. In some other cases, it might take a bit longer. The time frame depends on the terms of your severance agreement and various other factors.

Will I Receive a Lump Sum Payment or a Series of Payments?

Again, it depends. While most employers in California choose to offer a lump sum payment to their departing employees, your employer might pay you in installments – depending on the terms of your severance agreement.

What Are the Factors That Can Impact the Time Frame for Receiving Severance Pay in California?

Employment Contracts or Severance Agreements: If there is an employment contract or severance agreement in place that specifies the terms and conditions for offering severance packages, your employer is legally obligated to adhere to those terms. The time frame within which the severance pay should be paid out – whether it is immediate, spread out over a period of time, or contingent on certain conditions being met – is generally outlined in the agreement.

Company Policies and Practices: Your employer might have internal policies or practices regarding the timing of severance payments for departing employees. Depending on these policies, they might choose to pay your severance pay immediately after your termination or within a certain time frame.

Negotiated Settlements: In some cases, you might have to negotiate severance pay and other benefits with your employer following your termination or layoff. The timeline for receiving severance payments in such cases might depend on the terms negotiated and the resolution of any related legal or contractual matters.

Administrative Processes: Depending on the size and structure of the employer, there may be administrative processes or procedures that need to be completed before severance payments can be processed and disbursed. It can also impact the timeline for receiving your severance benefits.

How Our California Employment Lawyers Can Help You If There Is a Delay in Receiving Severance Pay

Legal Analysis: We can review the terms of your severance agreement and determine your employer’s obligations regarding severance pay. We can determine whether the delay constitutes a breach of contract, violation of employment laws, or other legal wrongdoing.

Demand Letters: If the delay appears to be unjustified or unlawful, we can draft and send a demand letter to your employer on your behalf. In the letter, we will outline your rights to severance pay, cite any relevant legal provisions or contractual obligations, and demand prompt payment of the overdue amount.

Negotiation: In some cases, a delay in receiving severance pay might be due to misunderstandings or disputes between you and your employer. In such cases, we can negotiate with your employer to resolve any issues and expedite the payment process. We can protect your rights and interests and work to reach a fair and mutually acceptable resolution.

Legal Action: If negotiations fail to resolve the matter or if the delay persists despite efforts to address it informally, we can pursue legal action against your employer. This might involve filing a lawsuit in civil court to enforce the terms of the severance agreement, seeking damages for breach of contract, or pursuing other legal remedies available under applicable laws.

👉Also Read: 3 Reasons Everyone Needs an Employment Attorney

Delay in Receiving Severance Pay? Get Legal Help from Our Seasoned California Employment Lawyers!

At Hershey Law, we know that delays in receiving severance pay and other benefits can cause financial strain and add to your stress during an already challenging time. It is why we are ready to provide you with the legal help you need at this difficult time and help you get the compensation and benefits you deserve.

We can review your severance agreement, negotiate the terms of the agreement to make sure you receive a fair severance payment, health insurance benefits, and other benefits you deserve, and take steps to make sure you receive these benefits in a timely manner.

Our award-winning employment lawyers know how to negotiate with employers and have a track record of achieving favorable outcomes for workers like you.

Call us today at 310-929-2190 or use our online contact form to schedule a free consultation with a California employment attorney at our firm.