Severance Pay Refusal

I have been working for the same company for 23 years and the companies contract I am working on is coming up to completion but will be picked up by another company. I will be getting laid off and because of a the company taking over the contract which offered me a job, the original company stated that if you were offered a job with the new company taking over the contract that they will not be giving us a severance package. Also, the people that did not get offers will be getting the severance package of 1 week for every year of employment, which is the policy they have followed in the past also. Do I have ground for a case if they do not give me a severance package? How can I negotiate a severance package? What should I do?

1 answer  |  asked Jun 6, 2004 08:03 AM [EST]  |  applies to Texas

Answers (1)

Trey Henderson

The scenario you gave is very common and is probably not in violation of the law. In Texas, the company does not have to give you a severance package. However, if their plan states that they must pay every employee severance, it could be an ERISA violation if they don't pay it. In this case, it sounds like their plan is conistent in that they pay severance to employees not receiving jobs with the new company. I suggest you see a local attorney to review the company plan to make sure it is not violating ERISA.

posted by Trey Henderson  |  Jun 6, 2004 08:50 AM [EST]

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