Is My Company Obligated to Pay All Assets in My Severance Package?

Question from Bill, Is My Company Obligated to Pay All Assets in My Severance Package?

Answer from AI:

When dealing with severance packages, it’s crucial to understand the terms outlined in the agreement you signed. In the United States, severance packages are generally governed by contract law, which means the specific terms of your agreement will dictate what the company is obligated to pay.

Understanding Your Severance Agreement

A severance agreement is a contract between you and your employer that outlines the terms of your departure from the company. This agreement typically includes:

• Payment amounts and schedules
• Benefits continuation
• Non-compete clauses
• Confidentiality agreements

Since you mentioned that the company is paying on two assets but not on the third, and you have a signed agreement, the company’s obligations will depend on the specific language in that agreement.

Key Considerations

1. **Contract Terms**: Review the severance agreement carefully. Look for any clauses that specify payment terms for each asset. The agreement should clearly state what the company is required to pay and when.

2. **Past Payments**: If the agreement specifies that past quarterly payments are due, the company is generally obligated to fulfill this requirement. If the language is ambiguous, it may be open to interpretation.

3. **Future Payments**: Similarly, if the agreement outlines future payments, the company must adhere to these terms unless there is a clause that allows for modification or termination of these payments under certain conditions.

Legal Recourse

If you believe the company is not fulfilling its obligations under the severance agreement, you have several options:

1. **Internal Resolution**: Contact your HR department or the person who handled your severance package to discuss the discrepancy.
2. **Mediation**: Consider mediation as a less formal way to resolve disputes without going to court.
3. **Legal Action**: If internal resolution and mediation fail, you may need to consult with an employment attorney to explore legal action. This could involve filing a lawsuit for breach of contract.

When to Seek Legal Advice

Given the complexity of contract law and the potential for significant financial implications, it is advisable to consult with a legal professional. An attorney specializing in employment law can provide personalized advice based on the specifics of your case.

Resources

For more information on severance agreements and your rights, you can refer to the following resources:

• U.S. Department of Labor: Severance Pay
• Equal Employment Opportunity Commission: Severance Agreements

Remember, while general information can be helpful, it is no substitute for personalized legal advice. Always consult with a legal professional to understand your rights and obligations fully.