Employer agreed to pay severance, cut a check then stopped payment.

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Rycan81

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An employer agreed in a written contract to pay a severance package in the amount of $15,000... A check was issued (with "Severance" written on the memo line)... I agreed to the semi-standard contract to relinquish the rights to all other claims and so forth.... The check was deposited into my bank account and I had started to pay bills with it... Four days later the bank said I was several thousan dollars in debt and that it was due to the employer placing a stop order on the check.

I understand that this is a similar case to the one described on these forums here:
w ww.thelaw.com/forums/showthread.php?t=34007&page=3

(Can't post links yet, so you have to delete the space in that link.. Sorry)

...however there are a few differences in the cases which I would like some added clarification on...

For starters, I actually have a signed contract... Also the money to be paid is far more then the post I linked to. Do these factors make my case stronger?

The only communication with the employee was a less then sufficient (and confusing) answer that he cut the check for the wrong amount.... But the check was for EXACTLY what was agreed upon in the contract.... Since no payment plan was discussed, it was assumed that the money would be paid in a lump sum... Does he have any recourse in claiming that he stopped payment so that he could pay incrementally, even though no prior mention to this occurred?
 
Since a contract is involved, you will need to have it reviewed by an employment or contract attorney in your area for his/her opinion & advice.
 
Agreed. We cannot comment on the enforceability of a contract or agreement we have not read in full.
 
If the agreement was breached or rescinded your remedy lies in a court of law. You need REAL advice from a REAL attorney in your county. Your ONLY recourse, if the employer has changed his/her mind is to sue. I predict a long, hard, slog with any result being a very long time away.


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