Severance Payout after 30 days
I (we) have severance agreements that we are 1)employed until May 15th and 2) won't receive the funds until around 30 days after that date. Is this legal? Why must we wait to get our monay?
1 answer | asked Mar 29, 2001 11:10 AM [EST] | applies to Michigan
Answers (1)
Severance pay can be based on conditions
Severance pay is usually based on an agreement by the employer to pay it. Therefore, the employer can set the severance terms that it wants. In your case, the employer conditioned severance on you remaining employed until 5/15.
The part about waiting a month to get paid would make me nervous, especially if the employer is financially shaky.
I suggest that you evaluate whether it is worth sticking around another six weeks and then risking non-payment. If you have a better opportunity elsewhere, consider taking it. Also, if you have the ability to leave now, approach your employer about paying you immediately on 5/15 if you stick around, since that is what the employer wants.
Please note that I am an Ohio attorney. This is general information only. To get legal advice, contact an attorney in your state.
Regards,
Neil.
posted by Neil Klingshirn | Mar 30, 2001 09:35 AM [EST]
Severance pay is usually based on an agreement by the employer to pay it. Therefore, the employer can set the severance terms that it wants. In your case, the employer conditioned severance on you remaining employed until 5/15.
The part about waiting a month to get paid would make me nervous, especially if the employer is financially shaky.
I suggest that you evaluate whether it is worth sticking around another six weeks and then risking non-payment. If you have a better opportunity elsewhere, consider taking it. Also, if you have the ability to leave now, approach your employer about paying you immediately on 5/15 if you stick around, since that is what the employer wants.
Please note that I am an Ohio attorney. This is general information only. To get legal advice, contact an attorney in your state.
Regards,
Neil.
posted by Neil Klingshirn | Mar 30, 2001 09:35 AM [EST]
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