Severance pay due if outsourced
I am employeed by CSC and work at a client site in Horsham PA. I was notified on Oct 31st that my position is being outsourced to a company named CC-OPS with my last day to be Nov 10th. I am promised an opportunity to interview with CC-OPS to continue working at the same position but as a CC-OPS employee. CSC does have a severance policy but I have been informed that if I decline any offer from CC-OPS I have in effect quit and therefore not eligible for any severance. Is this legal?
1 answer | asked Nov 3, 2006 6:20 PM [EST] | applies to Pennsylvania
Answers (1)
Your employer likely has no obligation to provide severance.
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, your employer likely has no obligation to provide severance. Employer policies are generally not enforceable contracts; severance policies are more akin to gifts than obligations. Furthermore, many severance policies have provisions that cancel severance upon the employee obtaining new employment.
If, however, your employer singles you out for cancellation of severance when other employees in your situation do not have their severance cancelled, you may have a claim. Generally speaking, however, you have no right to severance pay. Therefore, your employer can likely deny you severance if you do not take the new position.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Nov 4, 2006 08:00 AM [EST]
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, your employer likely has no obligation to provide severance. Employer policies are generally not enforceable contracts; severance policies are more akin to gifts than obligations. Furthermore, many severance policies have provisions that cancel severance upon the employee obtaining new employment.
If, however, your employer singles you out for cancellation of severance when other employees in your situation do not have their severance cancelled, you may have a claim. Generally speaking, however, you have no right to severance pay. Therefore, your employer can likely deny you severance if you do not take the new position.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Nov 4, 2006 08:00 AM [EST]
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