Severance pay for some, but not all - Fair or Unfair?

Severance pay is usually paid by an employer in return for a release from any legal claim. Although is is common for employers to pay severance in the event of layoff, it is not required by law. You are right in noting that paying severance to some employees and not to others is discriminatory. However, employment discrimination is not unlawful unless it is based upon some unlawful criterion, such as sex, race, religion, color, national origin, age or disability. The fact that the employer paid severance in the past but is not paying it in this round of layoffs may have to do with the employer's financial distress. If others who were laid off with you did not receive severance, you will have a hard time making a case by comparing yourself to people who were laid off in earlier days.

posted by Francis Fanning  |  Aug 3, 2009 11:44 AM [EST]