Severance Package

After 14 years of service, I have been advised that the owner of the PA based company is moving the accounting/office/support to CO. Terminating my job and that of one co-worker. The owner offered me severance pay of 1 month's pay plus a $10,000 gift, if I was able to close the office and transfer to CO by the end of February. I am one the last leg of completing that transaction and was advised today by the owner that my serverance pay would be distributed as follows: I would receive my regular pay on 3/15 and 3/31 after 3/31 I would receive a $10,000 check for the balance of my severance pay. What concerns me is: I currently make $45,000 per year, my husband pays child support and as a family we rely strictly on my income. My severance pay is not in writing and I feel the end of March payoff is to seek my assistance as needed in March to complete the transition to CO. Do I have to freely assist my ex-boss in order to make sure that I receive my full severance package? Should I ask for my severance pay in writing? My boss is coming to PA on 2/25/04 to remove the accounting/sales computer/software from the office.

Thank you in advance for any assistance you can offer.

1 answer  |  asked Feb 23, 2004 1:40 PM [EST]  |  applies to Pennsylvania

Answers (1)

Christopher Ezold
A writing is critical.

Before I answer your question, I must state that I do not represent you, that we have not met, and that your question may omit facts that would significantly change my answer. If you want a complete answer or thorough advice, I advise you to conact an attorney for a consultation.

That being said, if you have been promised severance pay in return for meeting a particular production goal, you will most likely have a right to that pay if you meet the goal. However, without the offer being in writing, you may have a difficult time proving your claim.

If you meet the goal by the end of February, by the terms of the offer as you state them, you do not appear to have an obligation to work through March.

Therefore, I would recommend that you write to your employer, stating the terms of the offer, when it was made, that you have accepted the offer and met the goal, and that you look forward to payment on the schedule you were given. You should be very specific about times, dates, amounts and name of those involved.

Furthermore, you should also set forth your willingness to assist through March, and give them an hourly rate, plus a 'package rate,' by which you would provide assistance, and ask for a respnose by March 1.

Your employer's response, or failure to respond, will provide some evidence you can use to support your claim or alert you to any potential for non-payment.

If you have any further questions, feel free to contact me to discuss.

/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
401 City Line Avenue,
Suite 904
Bala Cynwyd, PA 19004
(610) 660-5585

posted by Christopher Ezold  |  Feb 23, 2004 2:14 PM [EST]

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