Is a layoff the same as a termination?
When I became a minority shareholder in my comapny, I entered into an employment contract. Due to the downturn in business, our company has downsized and may have to downsize further. I found out the I may be one of the employees to be 'let go'. The employment contract has a section titled 'Termination' which contains a list of items that can cause my termination. All of them are related to 'cause' such as theft or substandard work. I was told that a layoff is not termination and therefore not covered in the contract. Is this correct or do I have any recourse?
1 answer | asked Dec 26, 2003 4:14 PM [EST] | applies to Ohio
Answers (1)
A layoff is one form of termination. It is an involuntary termination, usually for lack of work. It is almost always without "fault" by the employee.
It sounds like you have an employment contract that has a specific termination provision. If an involuntary layoff is not covered by the termination provision, then the question is whether you have any ongoing rights to continued compensation or to severance, since you have been laid off without fault on your part.
In order to answer that question, I need to see the contract. If you would like me to review it, call Bev Potter at 330.665.5445, ext. 0 to set up a consultation and to send a copy of the contract. I may need very little time to review your agreement to answer your question, so you may want to talk to Bev about scheduling less than a full consultation.
Best regards,
Neil.
posted by Neil Klingshirn | Dec 29, 2003 09:21 AM [EST]
Answer This Question
Sign In to Answer this Question
Related Questions with Answers
Contact Neil Klingshirn
Neil Klingshirn
AV rated Super Lawyer and Employment Law Specialist
Independence, OH
Phone: 216-382-2500