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  1. #1
    Join Date
    Apr 2011
    Posts
    4

    Default Employer Refuses to Honor Signed Severance Contracts

    I worked for a company for two years. 5 months into my employment it was announced the division I was working in would be shut down by the end of 2010. I was given documents for a severance plan for the shutdown and an additional supplemental rider.

    The documents stated that the severance benefits could be reduced or eliminated if my personal performance level became unsatisfactory, which includes "misconduct, poor performance, failure to adhere to company policy, or other job related factors"

    I received a favorable review for my work in 2008, and for full year 2009.

    During 2010, the main project which had been the focus of the prepoderance of my efforts for the last 18 months was completed successfully. I then had little work to do.

    Shortly after the completion of this project, I was given an unfavorable interim review, and later offered money to resign. I refused to accept the offer and was terminated. My termination check list shows "other" as the cause of termination. The form has specific boxes for insubordination, unsatisfactory performance, misconduct, violation of policies. None of these were checked.

    The company refuses to honor the signed severance documents. They state I am not elgible but will not state why. 9 months after my termination, no one has been hired to fill my role.

    My position is that they removed me from my job to save money, and are refusing, for some reason unknown to me, to honor the contracts.

    Can an employer just terminate you for any reason and refuse to honor a contract? If so, of what value is the contract?

  2. #2
    Join Date
    Dec 2009
    Location
    Lake Chapala
    Posts
    3,043

    Default Re: Employer Refuses to Honor Signed Severance Contracts

    Duplicate post. OP, don't try to confuse the issue by posting all over the place. This type of behaviour isn't viewed kindly here.

  3. #3
    Join Date
    Jul 2010
    Posts
    8,006

    Default Re: Employer Refuses to Honor Signed Severance Contracts

    I would imagine since you were, according to them, terminated for cause that it does not count as a severance related to the divisional shut-down which is what the contract was for. Also, since it stated that your benefits could be eliminated for poor performance and they gave you a poor performance review and then terminated you...that would seem to fit. It sounds like they are trying to weasel out of the contracts. Did anyone else who signed a contract get managed out?

    Whether it's legal or not I'll leave to the HR experts to theorize. Just giving my .02¢ on their reasoning, right or wrong.

    If you division was to be closed at the end of 2010, they have no reason to replace you in your role.

  4. #4
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Employer Refuses to Honor Signed Severance Contracts

    OTOH, this really smart of the employer is they wanted an out. Performance reviews are opinions. Only an attorney who has read the agreement in its entirety, and is versed in employment law, could give you what options you might have based on the laws in your state.

  5. #5
    Join Date
    Apr 2011
    Posts
    4

    Default Re: Employer Refuses to Honor Signed Severance Contracts

    free9man, thanks for your reply. Yes, I think they are weasling out. My point is that the measurable facts of my performance, along with their checklist, indicate I was not "terminated for cause", even though they must believe that I was, otherwise they would be willing to honor the deals.

    That no one has replaced my role is consistent with my theory that my job was eliminated, as opposed to me being terminated for cause and therefor creating a gap in the workforce.

    PattyPa, the performance review opinion is inconsistent with provable performance on my part during 2010. The review did not include opinions or comments of my colleagues, only my direct report.

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