Severance pay, Vacation time pay

Three months ago we were told our division in the company would be put up for sale. Shortly thereafter we met individually with HR and were given documentation on what our severance qualifications would be and were offered retention bonuses to remain six more months or until they found a buyer. Several weeks later, they found a buyer. We're now being told we will not get any severance pay because we will have jobs with the new company, but we do still qualify for our retention bonuses. From reading other postings, I see that Illinois does not require severance pay, but is the old company required to pay me for my vacation earned? Even if the new company brings us on at the same amount of vacation time? Also, if I refuse to go to the new company, am I in effect resigning from the old company? Would I qualify for unemployment benefits?

1 answer  |  asked Dec 17, 2002 4:41 PM [EST]  |  applies to Illinois

Answers (1)

John Otto
Severance and vacation pay

Excellent question. The answer may depend on something as esoteric as to exactly how the new company is buying the old company. If it is buying its shares (assuming the old company is a corporation)then you will be technically still working for the same company. If the new company is buying the old company's assets then you will be working for a new company. In either event, you will be entitled to your vacation, either to be paid for unused vacation, or to take the time off. If the new company is buying the old company's shares, then I believe refusing to work for it, could be considered a resignation and disqualify you for unemployment benefits. If the new company is buying the old company's assets, then it seems to me you should be entitled to unemployment, but you should hire an attorney in the Chicago area to look carefully at the details of the transaction and give you a definitive answer.

posted by John Otto  |  Dec 17, 2002 6:05 PM [EST]

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