Severance pay

[jason1982]

Jurisdiction

Indiana

So I have been working for a company for almost 11 years that works on a government contract. My company decided to no longer work on said contract and its being transferred to a different company along with all the employees that work on the contract. We were told all benefits would remain the same and that since we have a new job to go to we would not be eligible for severance. We were told verbally all benefits would remain the same and quickly received offer letters from the new company that only verified pay was remaining the same and we only have 5 days to accept the offer. After signing the offers they then release more details on the benefit package and nothing is the same that was promised. PTO is cut in half from 6 weeks to 3. 401k match isnt as much and so on. Can a company refuse severance if they provide you a new workplace to be hired at even though the benefits are not the same?

 

[justblue]

So I have been working for a company for almost 11 years that works on a government contract. My company decided to no longer work on said contract and its being transferred to a different company along with all the employees that work on the contract. We were told all benefits would remain the same and that since we have a new job to go to we would not be eligible for severance. We were told verbally all benefits would remain the same and quickly received offer letters from the new company that only verified pay was remaining the same and we only have 5 days to accept the offer. After signing the offers they then release more details on the benefit package and nothing is the same that was promised. PTO is cut in half from 6 weeks to 3. 401k match isnt as much and so on. Can a company refuse severance if they provide you a new workplace to be hired at even though the benefits are not the same?

Yes.

 

[retic]

I've been a government contractor for almost 30 years with the past decade being spent passed around to three different contractors while working for the same federal agency due to 8a set-aside contracts expiring (same rump, same chair, different employer name on the paycheck). Not only is your situation legal, it's common.

Some advice: if you've been there for 11 years you've likely experienced wage compression. Brush up your resume and find another job since you're starting over anyway with zero seniority for benefits. You may be pleasantly surprised at what's available, and since you have a job you can afford to be picky.

 

[army judge]

Can a company refuse severance if they provide you a new workplace to be hired at even though the benefits are not the same?

There are no laws that require an employer to offer terminated employees a severance package.

A severance package might be required if it stated in the CBA for unionized employees.

A severance might be mandated if a soon to be terminated employee possessed an employment or personal services contract.

Otherwise, to paraphrase the Soup Nazi of Seinfeld fame, "No severance for you!"

 

[zddoodah]

So I have been working for a company for almost 11 years that works on a government contract. My company decided to no longer work on said contract and its being transferred to a different company along with all the employees that work on the contract.

So...what's really happening is that you're being fired and being offered a job with another company. Right?

Can a company refuse severance if they provide you a new workplace to be hired at even though the benefits are not the same?

Of course. Unless on of the following conditions exists, an employee has ZERO entitlement to "severance": (1) the employer and employee are parties to a contract that requires severance; (2) the employee is a civil service employee and the law requires severance; or (3) the employee is a member of a labor union that has a collective bargaining agreement ("CBA") with the employer and the CBA requires payment of severance.

 

[cbg]

It is unusual in the extreme for severance to be granted in the event that work is offered and refused, regardless of what the benefits might be.