Forums
Severance Pay
Benefits & Compensation
Severance Pay
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
We recently bought another company that is doing very poorly. They aren't making enough money to cover payroll. Yesterday, we had to close down 4 offices, eliminate 5 executive positions and a few oth
0
Cat:Topic ForumsForum:ForumId52
Cat:Topic ForumsForum:ForumId52Discussion:DiscussionId15282
Forums » Topic Forums » Benefits & Compensation » Severance Pay
|
Severance Pay
posted at 8/9/1999 7:04 PM EDT
|
Posts: 63
First: 8/1/1999 Last: 8/31/2000 |
We recently bought another company that is doing very poorly. They aren't making enough money to cover payroll. Yesterday, we had to close down 4 offices, eliminate 5 executive positions and a few others. Are we required by law to pay severance even though it is not written in anyone's contract? Do we have to give them any kind of notice? The cutbacks were effective immediately.
|
|
|
Severance Pay
posted at 8/10/1999 11:37 PM EDT
|
|
Posts: 6
First: 8/4/1999 Last: 12/20/1999 |
My understanding is that severance is not a requirement. However as far as notice is concerned, the dilemma is that if you give notice, there may be sabotage, disgruntled people who pass that on to others. When we let people go due to rightsizing, we gave notice of 30 days; in retrosopect, if we ever give notice again, it will most likely be a 1-2 week notice. |
|
|
Severance Pay
posted at 8/14/1999 1:25 AM EDT
|
|
Posts: 7
First: 8/12/1999 Last: 5/23/2001 |
You are not required to pay any severence pay by law. However, depending on the state you do business in, you are required to pay earned and accrued vacation. An example of this is as follows:
Let's assume that company X awards 2 weeks vacation on the first of the year (i.e. '99 as the example). If company x lays off an Mr. Smith on August 29. The company should pay the 2 weeks of vacation (if not used) and 8/12 of 2 weeks accrued vacation for the year 2000. I regards to the notice - in some states you have to give a thirty day notice if it is a production facility. I would recommend checking with your legal counsel on this matter. |
Forums » Topic Forums » Benefits & Compensation » Severance Pay
