Laid Off In Austin, TX. Exit date 3-15, recvd. severance pkg. offer. Rehired 3-17, told no cannot have it????

Question

Why am I not eligible for it as I was told that if I was rehired after the termination date, I could get it? Anybody have any suggestions as I do not want to approach my employer fearing I might lose the new job.

Answer 1

If the severance package included a release, and if you signed that release, then some portion of that package should be payable.  In general, a company will pay severance over time (rather than in a lump sum), and if you're re-hired, those payments stop when you go back on the payroll.  I've seen this provision in many company employee handbooks.  The only exception I know of is if the severance is required by a union contract with the company.  One other thing to consider is if your benefits start all over again, or if they pick up where you left off.  I'm referring to accumulated sick leave and vacation, vesting in the retirement plan, and any other benefit based on length of service.  But if you were re-hired on the second day, and you actually did not miss any pay, and if your benefits continue uninterrupted, then I'd say no severance is due.  The main purpose of severance is to ease the transition until you find other employment.  That does not appear to be necessary in your case, and that's why they said no.

Answer 2

You're not eligible because you never were terminated from the company.  Instead of letting you go, they were nice enough to offer you another job and keep you employed.  Severance packages are for those who are no longer employed, in an effort to help them out until they find a new job.  That is just not the case with you.