Severance package rescinded

UPDATED: Oct 1, 2022

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Severance package rescinded

I was told last Monday 4/18 that my position had been cut and that if we wanted to stay employed we had to reapply for another position with in the company or take a severance of 2 weeks for every year that we had been there. I then found another job and removed myself from consideration for the future positions expecting to be able to take the severance package. I was then told by HR that I am not eligible for the package due to my resignation. I live in MI and work for a company based out of OH.

Asked on April 18, 2019 under Employment Labor Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, you do not, not unless you already had a signed severance agreement guarantying you the severance in this situation. There is no legal obligation on employers to provide severance; if they choose to do so, they may determine when to offer it and to whom, as well as the rules for eligibility. Because offering severance is voluntary, they may also rescind the offer at any time before there is an actual severance agreement contractually guarantying it.

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 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.

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