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Who is eligible for a severance agreement during a layoff?

On Behalf of | Feb 25, 2014 | Firm News |

Hamilton Law – Bucks County PA Attorneys for Severance Benefits

Who is eligible for a severance agreement during a layoff?A layoff is generally a controlled involuntary separation of a group of employees from the company. Not all layoffs involve payment of separation benefits or severance packages but most large corporations will offer some form of “hand raiser” benefits that will be accompanied by financial incentives for volunteering to leave the company. Once the employees accepting voluntary terminations have been identified, a company needing to further reduce its workforce will then begin to identify employees whose jobs can be consolidated or eliminated to determine the pool of employees subject to layoff.Not all such layoffs involve severance benefits and your only recourse may be to file for unemployment benefits. The size and relative financial health of the company will largely determine whether you will receive a severance payment. There may also be instances where the company’s ERISA plan dictates what benefits are to be received in a layoff. When you are informed that you are subject to a layoff, you should contact an attorney to discuss your options and to review the severance agreement presented to ensure that you are being protected.