Will a company typically provide an option for severance if they are restructuring?

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Will a company typically provide an option for severance if they are restructuring?

My company has already told me, and all other managers, that we will no longer be managers under a new structure. We will take on a direct sales role of some sort within the next 60 days. They haven’t released more but this is all due to a restructuring that the company is going through. I want to know

if I should expect them to present me with the new role and comp plan, as well as, a severance option should I not like what they are offering? Is that reasonable to assume? I’m inclined to accept the severance at this point.

Asked on April 20, 2017 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

There is no general rule about severance, since the law does not require it: companies are free to offer it, or not offer it, as they choose. The only way to know if they will offer severance and, if so, how much, is to talk to them.


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