What happens to severance commitments when a company is purchased?
My fiancé has been employed in a Philadelphia-based company for 17 years. It was recently announced it had been purchased by an LA-based company, and many layoffs would be forthcoming. Will the original company's severance package (better than the new company's) be enforceable? Is a company required to pay out accrued vacation days?
1 answer | asked Oct 7, 2015 11:59 AM [EST] | applies to Pennsylvania
Answers (1)
I cannot answer which company's severance package will be enforceable without knowing more about the details of merger or purchase of the companies.
As to pay out of vacation days, Pennsylvania law does not provide for the right to payment of accrue vacation days at the termination of employment. That is a matter between the employer and the employee only. Therefore, in order to have a right to being paid accrued vacation days, you would need some type of contract or employment agreement entitling you to the same (or perhaps even a pattern at the company of doing so in the past).
posted by Scott Leah | Oct 16, 2015 05:46 AM [EST]
As to pay out of vacation days, Pennsylvania law does not provide for the right to payment of accrue vacation days at the termination of employment. That is a matter between the employer and the employee only. Therefore, in order to have a right to being paid accrued vacation days, you would need some type of contract or employment agreement entitling you to the same (or perhaps even a pattern at the company of doing so in the past).
posted by Scott Leah | Oct 16, 2015 05:46 AM [EST]
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