severance pay advise

Two of my employees recently told me that they had been offered a better job somewhere else. I told them that I could not match their offer and that I needed to know what they were going to do. They told me that they were going to go to the new company. I told them then that they needed to get their personal belongings and leave the office immediatly.

One of the employees is now asking for severance pay. Do I have to pay her severance pay? My office does not have a policy on severance pay, we are a very small company.

Please advise.

1 answer  |  asked Dec 29, 2004 2:09 PM [EST]  |  applies to California

Answers (1)

George Allen

An employer has no obligation to pay severance pay other than as self-imposed, via policies, employment agreements, etc. Therefore, if you never offered any severance pay to your employees, you have no obligation to pay severance to the departing employees.

posted by George Allen  |  Dec 29, 2004 3:10 PM [EST]

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