Legal Question in Employment Law in California

The company I work for is selling off the business unit where I work. The company has a severance package, however, they claim that no one in the business unit is eligible for severance because the new owners will retain all of the business unit employees. Are there any legal precedents regarding severance that would benefit the employees of the business unit?

Asked on 8/28/10, 5:32 am

2 Answers from Attorneys

Jim Betinol Withrow and Betinol Law

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Generally, companies are not required by law to offer a severance package. However, if they do offer a severance package then they are required not to discriminate in distributing them. Severance package is generally provided when you are terminated by the company and the amount you receive can be based on several factors (e.g. duration of employment, position, etc.)

However, in your case the company is not terminating the employment of any of the employees in the business unit, but instead selling it. The new owner may have their own severance package policy, you should inquire.

Disclaimer: This communication does not create an attorney-client relationship and such a relationship can only be formed through a signed written agreement. This communication is not legal advice and should not be solely relied upon in making your legal decisions. Any situation depends on many different facts and specific laws that require an in-depth legal consultation to evaluate the best solution for your needs.

Answered on 9/02/10, 9:15 am

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