Change of severance plan without notification

We have a written severance plan which offered up to 6 months severance (2 weeks per year of service). Our parent company has now changed the plan so that the maximum an employee can receive is 4 weeks. Two weeks for up to 3 years of service;4 weeks for 3 plus years. We have not been notified on our website or writing about this change.

Staff who were in negotiation with the firm - told that they would get 6 months severance went back to them on Monday and said they would take the package. The firm said that plan is no longer in effect. Also, some people had the severance package in writing and had 45 days to sign. They are now told that agreement is no longer valid.

Can you help?



1 answer  |  asked Oct 11, 2001 4:05 PM [EST]  |  applies to Illinois

Answers (1)

Aaron Maduff
Validity of Revoked Severance Packages

This is a difficult question because an attorney would need to see the severance packages. As a general rule employment in Illinois is at-will. Thus an employer can change the severance package and if you don't like it, you can quit. However, where the package has been offered, if it is a firm offer which is available for 45 days then I would think it would still stand. But in order to determine whether the package does stand, one would have to review it. This is one circumstance where seeking information on MEL is not likely to be sufficient. You should take the package and your concerns to an attorney immediately.

posted by Aaron Maduff  |  Oct 12, 2001 03:37 AM [EST]

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