Hacker News Reader

You have to make sure that well-understood criteria is followed for layoffs, or else the action might be understood as a firing. [1]

This is important, because a company can be held liable for wrongful termination. [2]

[1] https://www.nolo.com/legal-encyclopedia/making-layoff-decisi...

[2] https://www.employmentlawfirms.com/resources/employment/wron...

View on HN

About wrongful termination: Does severance pay help to reduce risk for companies? I always assume the risk comes from insufficient severance pay. My point: Even if you have grotesque firing practices, enough money can pave over the problem.

You sign an agreement Not to sue in order to get your severance. Unless you have money, bringing a suit is hard. And if you are suing a company that is slashing headcount to increase runway, what are your chances to get anything years down the road?

> Does severance pay help to reduce risk for companies?

In California, severance is almost always in exchange for signing away various rights, one of which is likely any claim of wrongful termination. You can always try to negotiate the payout or the terms, though. Just expect to hear "no."

Reply on news.ycombinator.com