If some employees are granted severance packages for lay offs, are all employees required similar packages.

UPDATED: Jun 12, 2009

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If some employees are granted severance packages for lay offs, are all employees required similar packages.

My company is downsizing and has offered several employees a week severance pay for every year they were employed. Many of us are also losing our jobs but those jobs are being picked up by another company. My question is: Are we entitled to severance packages as well seeing how our jobs are no longer being continued by the company and is, in essence, a lay off?

Asked on June 12, 2009 under Employment Labor Law, Vermont


J.V., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

from what I am understanding certain jobs are being lost but not really because those positions are being picked up by another company resulting in those individuals not being out of work but just working for a different company.

If I understand correctly than I tend to say no, the severance package is for those who will be out of a job. If the new job pays substantially less or something like that you can possibly pursue the matter yet it is still not a guarantee that you will be provided such a package. In short if a person is still employed just by another company they would not be given a severance package as described above

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