Severance Packages

I am currently the VP of Investments at a Brokerage House. The work force is being downsized and I want to know information re severance packages.

For all who are unfamiliar with severance packages, employers are not required by law to give severance packages. Employers are only required to give severance packages if:

There is a written contract that requires one.
Employee handbook promises one.
Oral promises are made regarding severance packages.
Or there is a history of the granting of severance packages.

If you are offered a severance package you are usually compensated one week for every year you worked for that company. Individuals who hold higher managerial positions typically get more money. If you have been offered a severance package it is important to find out when you have to accept it by. Also, usually if you accept a severance package you give up all legal rights to file suit against that employer.

Scenerio:

The Vice President of a company terminates an employee. During their meeting the VP informs the employee of what he will be entitled to regarding benefits and pay. Employee is told about information he will be receiving in the mail for continuing with benefits, 401K, etc. Employee is asked to sign a number of papers which will terminate his employment with the company. On such papers the company leaves the reason for termination blank. The employee refuses to sign anything until there is a reason for termination written. Reason given was for restructing.

VP asks employee if he would remain on call over the next two weeks to answer general questions (employee serves in a technical role) in exchange for an additional two weeks of pay for his services. Employee agrees. Office personal from accounting were present at the meeting and went over what the employee would be receiving and when. The accounting person informed the employee that he would get his final paycheck which would include one week of pay plus 3 weeks of vacation on the next pay date (which by the way was not physically given to him but sent via mail 4 days late). The additional two weeks would be payed out two weeks after that.

Employee has attempted quite a few times to contact both the accounting personal and the VP regarding this matter and matters regarding his 401K but is not receiving any phone calls in return. Employee managed to reach VP and asked if he had a few minutes to talk but VP said he was busy and would call him back. No phone calls have been returned back to the employee.

Do you think this employee has a case against his employer?

Thank you for any assistance you may be able to provide.

You can try presenting your case on LegalMatch or something like that to see if any employment attorneys think you have a case. Personally, I think an attorney would not be interested in this case because, even if there were damages, they would be minimal and not worth the time to sue.

Another alternative is to contact the labor board in your state and see if you can make a complaint through the labor board.