Can Executive Grade employees be discriminated in amount of payment of Severance Pay.

My company is being taken over by another company. To save the jobs of employees, current management has approved a Severance / Compensation Policy for Executive Cadre employees of Grade 7 to Grade 14. That policy secures the jobs of Executive employees for a period of 18 months from the date of change of management. However they have discriminated among the Executive Grade employees. As per policy:

i. Grade 11, 12, 13 and 14 shall receive total 18 months salaries if their job is terminated any time within 18 months of change of management.

Explanation: If job is terminated after 12 months of change of management even then employee shall receive 18 months severance pay.

ii. Grade 7 to 10 shall receive 18 months salary less salary for number of months worked after change of management.

Explanation: If job is terminated after 12 months of change of management the employee shall receive 6 months severance pay.

Does it fall in discrimination with Grade 7 to 10 employees?

1 answer  |  asked Jan 9, 2012 10:56 AM [EST]  |  applies to New Jersey

Answers (1)

Doris Dabrowski
Is there a company severance plan that enables an administrator to match eligible employees with a benefit prescribed by the plan? If so, the employer generally must comply with the terms of the plan, unless the plan itself violates benefits laws.

Unless there is a plan or a contract that requires a severance payment, the law does not require an employer to provide any severance benefit. However, the employer may not discriminate on the basis of race, sex, national origin, religion, disability, age, sexual orientation.

If you wish to discuss the particulars of the proposal offered to you, contact a lawyer to review the plan and the factual circumstances of your concerns.

Doris Dabrowski
1525 Locust St., Philadelphia, Pa. 19102
dabrowskid@verizon.net

posted by Doris Dabrowski  |  Jan 9, 2012 1:08 PM [EST]

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