I'm going to be severanced later this year. Can my company legally stop my severance benefits?

Question

Can my company stop my severance payments if I obtain new employment with a new firm?

Answer 1

If your severance pay is pursuant to a contract, your rights are found in the contract.  If they are just deciding out of the goodness of their hearts to pay you even after you stop working, then yes they can change their mind at any time.

Answer 2

Yes.

Answer 3

If you signed a contract then the amount agreeded upon in that contract should be paid in full unless it has some sort of new emplyment clause in there.  I think that would be rare because severance is usually considered a gift from the company. It's not like collecting unemployment.

Answer 4

no they cant unless the new company took over the old company

Answer 5

Severance payments are not usually tied to the employee's future employment/unemployment.  They are usually a payment based on amount of time you have been with the company, an agreement not to sue, and sometimes an agreement not to compete with the company for a period of time, etc.

Read the agreement you signed.