Severance package rescinded

I was told last Monday 4/18 that my position had been cut and that if we wanted to stay employed we had to reapply for another position with in the company or take a severance of 2 weeks for every year that we had been there. I then found another job and removed myself from consideration for the future positions expecting to be able to take the severance package. I was then told by HR that I am not eligible for the package due to my resignation. I live in MI and work for a company based out of OH.

Asked on April 18, 2019 under Employment Labor Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

No, you do not, not unless you already had a signed severance agreement guarantying you the severance in this situation. There is no legal obligation on employers to provide severance; if they choose to do so, they may determine when to offer it and to whom, as well as the rules for eligibility. Because offering severance is voluntary, they may also rescind the offer at any time before there is an actual severance agreement contractually guarantying it.


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