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  1. #1
    Join Date
    Sep 2009
    Location
    twin cities, mn
    Posts
    1

    Default Can They Take Away Severance

    My question involves labor and employment law for the state of Minnesota.

    I have just lost my job because our department has been out-sourced. I have an opportunity to apply for and be hired by the out-source company, but if I accept the position, I am told, I forfeit my severance package. I’ve been with the company for 13 years and the severance package is worth 26 weeks pay. It seems a lot to lose considering I may have to accept the same job, if offered, at less pay.
    Do I have a leg to stand on?

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

    Default Re: Can They Take Away Severance

    Severance pay is to "hold you over" until you find other work. Why would the employer pay you severance if you're working? OTOH, why would you get unemployment benefits if you turn down work? See where I'm going here? This is perfectly logical on the employer's part and is a very, very common provision in severance agreements.

  3. #3
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Can They Take Away Severance

    They not only can do that, I don't think there's a company in the US that would do things any other way. It is common practice for severance to be withdrawn if employment is offered, and it is completely legal in all 50 states.

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