Unfair severance pay

My Company has a written severance policy that gives two weeks pay for each year of service, the policy was written in 1998.

In 1999, my company laid off about 20 people and gave them 30 days notice, in addition to 6 weeks plus 3 weeks pay for each year of service.

Now my company is planning to lay off again, but is only going to give two weeks pay per year of service.

Is my company liable for not offering the same package that was offered in 1999? Do I have any grounds in this situations?

1 answer  |  asked Jul 18, 2001 1:43 PM [EST]  |  applies to Texas

Answers (1)

Margaret A. Harris
No Law Dictates Amount of Severance

There is no legal requirement as to the amount of severance a company must offer. There is only the WARN Act, which requires 45 days' notice if an entire plant is being shut down. Otherwise, it's up to the company and employee to come to an agreement. The companies often ask that employees sign a release to get the severance pay. If that is the case, you may want to see a lawyer before signing the document to find out if you have good grounds under the law to bargain for more money.

posted by Margaret A. Harris  |  Jul 18, 2001 2:11 PM [EST]

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