Under what circumstances is an employee eligible for severance?

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Under what circumstances is an employee eligible for severance?

About 8 years ago, I was laid off as my department was eliminated. I was given severance and offered a job with the new company taking over those duties but I declined. I was offered a job by the same company 5 years ago but I’m now again getting laid off from the same company. I was given a week to accept another severance package or accept a job with the new company they are forming to do the same job. Shouldn’t I receive the severance regardless?

Asked on February 6, 2016 under Employment Labor Law, New York


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

No, there is no obligation for a company to *ever* offer severance--it is purely voluntary on the part of the company, unless there is a written employment contract guarantying it to you. (If there is, they must honor the contracts terms, and you could enforce them in court, if necessary.) Otherwise, though, they can decide whether to offer severance and, if they do, put whatever conditions on it that they like.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption