Ineligible for Severance in buyout situation
Our employer has the following statement in our severence plan:
"You are ineligible to participate if you are offered a job with a company that purchases all or part of the operation in which you are employed or is a successor in ownership or management of that opertion."
As it turns out, someone in interested in buying our division, but rumor has it, there will be significant reorg after the buyout. So, 2 questions:
1) How do we protect ourselves from going with the new company and then some months later being laid off with no severance benefits?
2) Would the new owners have to offer you the same job/ pay/ hours as your current employer, or could they just offer you any position for you to be ineligible for severance?
Thanks for any information
Answers (1)
Your rights to any severance are going to be spelled out in the plan itself. If you do not have a copy of it, request one from the Plan Administrator. You may have a summary of the plan, but those usually have some kind of disclaimer saying that if there is a difference between what the summary says and what the plan says, the plan controls. So, you should get the plan itself and read it. If it is written in legalese, you may want to consult with an employment lawyer there in Austin who can interpret the plan's provisions for you. You should be able to get a copy of the plan by writing to the Plan Administrator. That person (or entity's) name and address should be in the back of the summary book. If it is not, call your HR or Personnel dept.
As far as strategic planning is concerned, that takes time and a full understanding of the situation.
posted by Margaret A. Harris | Nov 27, 2001 7:06 PM [EST]
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