What is the law regarding severance package eligibility?
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What is the law regarding severance package eligibility?
My employer has had 2 general layoffs this year, 25 people 6 months ago and 40 people
last month. They were given a severance packages equivalent to 1 week per year of service. I was not part of this initial layoffs. The company is having financial difficulties so I have been looking for another job. If I resign and give my 2 week’s notice, is it possible to claim the severance package benefits?
Asked on August 12, 2016 under Employment Labor Law, Florida
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Providing a severance package to departing employees is not legally mandated. Accordingly, an employer has a great deal of discretion when and to whom to pay such a package. The fact is that in an "at will" employment arrangement, a company can set the conditions of the workplace much as it sees fit. This is true unless such action violates the terms of a union/collective bargaining agreement or employment contract. Additionaly, such action must not constitute some form of lehally actionable discrimination or retaliation.
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