Delayed Severance

An employer has no obligation to pay severance to a discharged employee regardless of the reason for layoff. There are two basic reasons that an employer pays severance. First, it creates a sense that the discharged employee is being treated fairly, which is important for maintaining the morale of those who remain in the workforce. Second, most severance agreements contain a provision releasing the employer from any of the various legal claims an employee might be inclined to pursue, such as wrongful discharge, unlawful discrimination and so on.
Because the law does not mandate the payment of severance, an employer is free to craft its severance agreement however it chooses. Of course, you are free to reject the severance if you would prefer to pursue a legal claim against the employer. It's your choice.

posted by Francis Fanning  |  Mar 8, 2012 10:13 AM [EST]