My company is closing we were told we will receive a severance pay. We recently found out a new company will be taking over the business. We will still have jobs under the new owners. Will our present employers still pay a severance since ownership is just be transferred and we will not be out of work?

1 answer  |  asked Feb 20, 2005 12:47 AM [EST]  |  applies to New York

Answers (1)

David M. Lira
Entitlement to Severance

Your question raises complex corporate questions as to whether the acquisition by the new owners is a stock purchase or an asset purchase. If a stock purchase, your employer is technically just continuing on, so that no one is technically losing his or her job.

In any case, employees are not entitled to severance pay. About the only thing that an employer must pay an employee on termination is pay for the last pay period (if any), and accrued vacation (if any).

posted by David M. Lira  |  Feb 21, 2005 08:57 AM [EST]

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