Full-time and part-time employees who are involuntarily separated from service may be entitled to receive severance pay. The amount of severance pay and benefits will depend on the company’s severance plan. If a company has a severance plan, they must offer you pay and benefits according to that plan, if you meet all necessary conditions.
Continuous Service
Typically, the amount of severance pay offered by a company is based on the amount of continuous service worked for that company. For example, if a person works for a company for five years, leaves and later returns to that company and works for two additional years, only two years of severance pay will be offered.
Ineligibility for Severance Pay
In most situations, if an employee is terminated or fired for cause or misconduct, that employee will not be offered severance pay. Most severance plans require an employee to be laid off or subject to a Reduction in Force (RIF) in order to be eligible to receive severance pay and benefits. However, in certain situations, if a company believes an employee may have valid employment discrimination or unpaid wage claims, they will offer the employee severance pay in order to obtain a general release of all claims. If you receive an offer of severance pay, it is very important that you contact the New York City employment lawyers of Fitapelli & Schaffer to review this very significant legal document.
