Employer will not pay severance

My offer letter states that " If there is a change in business that requires us to terminate your position with Fathom, you will be entitled to receive a severance package of three (3) months salary or until you find another job, whichever comes first."

The compnay says they can't pay, they are barely in business. What are my options?

1 answer  |  asked Oct 19, 2001 09:19 AM [EST]  |  applies to Ohio

Answers (1)

Neil Klingshirn
You can file suit to enforce a severance benefit

You have two issues. The first is whether you are entitled to severance pay and the second is whether the company will pay it. If you are terminated , you are entitled to three months of pay or until you find a job, whichever comes first. Getting the company to pay, however, may require filing suit.

The company will have little defense to a suit for severance, assuming you were terminated. Lack of funds is not a defense. A judge should rule in your favor and give you an order requiring the company to pay. At that point you have won only half the battle. The harder half may be getting paid.

To get paid, you will have to take the court order to your employer's bank and fill out a garnishment order. You can also attempt to attach other assets. This is all difficult, confusing and time consuming. If the employer is being honest and really has no money, it will also be futile.

If you are not terminated, find another job now. If you are terminated, consider filing suit. You can do so without an attorney if you needed to do so. If you believe that the company really has no money, however, consider bargaining for what you can get and finding work with a more solid enterprise.

I hope this helps.



posted by Neil Klingshirn  |  Oct 19, 2001 2:10 PM [EST]

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