forfeiting 1/2 of severance pay if hired by another organizaiton.

My employer has outlined some provisions regarding severance packages.
One is that if an employee receiving a severance package is hired by
another organization, they will only
receive 1/2 of their remaining severance pay.
How can they prove this, and is the employer legally
able to withhold the other half of remaining severance?
Thanks for any information you can provide on this... -Ceil Boesche

1 answer  |  asked Oct 9, 2001 10:59 AM [EST]  |  applies to Minnesota

Answers (1)

Bill Egan
Severance Terms

The terms of the severance agreement will control. They can attach any stipulations to the agreement that they want, including a reduction in benefits if you become re-employed.

How can they prove this? Well, if they believe that you are working elsewhere they will probably call and ask you if that is the case, or call the new employer and try to get the information from them. If they cannot get the information by these means, they will likely assume that you are reemployed and unilaterally cut your benefits in half.

posted by Bill Egan  |  Oct 9, 2001 12:19 PM [EST]

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