company buyout job elimination

I have been employed on salary since 1990. On 11/15/02, my company was sold and I was given an status quo employment contract through 3/31/03. On this date the new owners all but told me my job would be eliminated unless I was willing to relocate. Other wise I could do things hourly as needed. I do not wish to relocate, nor do I wish to continue to remain on an as needed basis. I plan to give my notice for these reasons and the fact that I am unhappy with the business practices of the new owners. Am I entitled to any severance pay, vacation pay, or unemployment compensation (I have also recently become self employed in a small home based business)?

1 answer  |  asked Apr 2, 2003 1:32 PM [EST]  |  applies to Illinois

Answers (1)

Aaron Maduff
company buyout job elimination

The bad news is that you are not entitled to severance pay. Companies often offer severance pay in return for waivers of potential liability, but they do not have to do so. The good news is that you can receive unemployment. The company is not going to challenge your discharge on the basis that you committed misconduct (known as a section 602 challenge) and if they do they would probably lose on these facts. Furthermore, if they challenged it on the basis that you left voluntarily (known as a section 601 challenge) all you have to show is that you had good cause for leaving. Frankly, relocating sounds to me like good cause. I hope this helps.
Aaron Maduff

posted by Aaron Maduff  |  Apr 2, 2003 10:46 PM [EST]

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