Severance contract

[Aise0603]

Jurisdiction

Oklahoma

I was recently laid off. My former employer sent me home and told me that I would be officially let go on July 11th. On July 15th, they sent me an email notifying me that the 12th was my official termination date and gave me a severance offer. I signed the document and returned it to them. The CEO signed the contract and returned a copy to me. Three days later, they sent me an email saying the contract had a clerical mistake in it and the amount should've been half. They sent a new contract to me with the smaller severance package in it. The company filed for bankruptcy perhaps 6 weeks ago and say the court had only given them the okay to pay the lesser amount. Bear in mind that the severance contract was signed after the filing of bankruptcy and after DIP financing had been secured.

 

[justblue]

I was recently laid off. My former employer sent me home and told me that I would be officially let go on July 11th. On July 15th, they sent me an email notifying me that the 12th was my official termination date and gave me a severance offer. I signed the document and returned it to them. The CEO signed the contract and returned a copy to me. Three days later, they sent me an email saying the contract had a clerical mistake in it and the amount should've been half. They sent a new contract to me with the smaller severance package in it. The company filed for bankruptcy perhaps 6 weeks ago and say the court had only given them the okay to pay the lesser amount. Bear in mind that the severance contract was signed after the filing of bankruptcy and after DIP financing had been secured.

Did you have a question?

 

[Aise0603]

Did you have a question?

Is the original executed contract binding?

 

[cbg]

Contract review is beyond the scope of this forum. You will need to show all the associated documentation to an attorney in your state.

 

[adjusterjack]

Is the original executed contract binding?

Did you file for unemployment compensation?

 

[zddoodah]

Is the original executed contract binding?

As you described it, it sounds like it, but it would be foolish to opine about the enforceability of a contract without the ability to read it. More importantly, in this case, the contract is only as enforceable as the bankruptcy court says it is.