Re: Severance pay and forced retention

"accountant3523" <groups1355@xxxxxxxxx> wrote in message
news:1147665966.665752.31670@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
I don't think the company is obligated to give me the severance.
However, this is a large company that has always given its layoff
workers a severance package. It would be extremely unusual if I were
to not get a package. Is this something that would be governed by
state law and not federal law?

It may be that the company is obligated to provide a severance package. The
fact that they "always have" leads to two possibilities that would support
such a conclusion. First, it is possible that this severance pay practice
is a company policy. If so, it is part of your employment contract/
expectations and cannot be violated without notifying employees in advance
that there will be a change in policy. Second, even if the practice is not
an affirmative company policy, there is a possibility that any failure to
continue doing what they "always have" done could create grounds for a
discrimination complaint. So contrary to your conclusion, it may be
possible to force the company to grant you the same severance package that
they have granted to others.

So onward to the real question. What can you do if you quit during the
period between notice of your layoff and the effective date of layoff, and
severance pay is denied. This is a tough question, but it seems to me a
court would respect a company argument that a person who quits can be denied
severance pay even if that person quit after being notified there would be a
layoff. The reason I'm leaning that way is that there is nothing I know of
in law in my state, or in any other state or country that I have heard
about, which would obligate a company to grant severance pay, except one
thing: the company can be bound to its own policies. Therefore, the policy
should be respected not only as to the obligation, but also as to the limits
and exceptions pertaining to the obligation. It may be that the reason for
giving employees such a long advance notice of layoff is to put them in a
position where some or most of them will find new jobs and therefore quit,
giving up their severance pay, rather than take the risk of a gap in
employment.

What to do about it. I suggest you go to HR and ask: "Should I be looking
for a job? Should I accept a job if one is offered? Will I lose my
severance pay by finding another job and quitting? Do you want me to stay
until X-X-06 and not accept any other job that may come along if it would
require me to start before X-X-06? Are you going to compensate me somehow
for taking the risk of a gap in employment by not looking for another job?
May I have something in writing please?"

This answer must not be relied on as legal advice for the reasons posted
here: http://mcgyverdisclaimer.blogspot.com

McGyver


.

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