Legal Question in Employment Law in California
Severance compensation upon sale of division
I received an addendum to my employment agreement stating eligibility for severance compensation should my position be eliminated due to drastic change within the organization such as liquidation or relocation.
The company is now under liquidation and have sold our division to another company. They have not terminated our positions however and we are still compensated as before. The new company will most likely offer our division similar employment but I do not know at this time if I would accept.
What options/rights do I have at this time to exercise this addendum?
Would I have to wait until my position is "eliminated"?
1 Answer from Attorneys
Re: Severance compensation upon sale of division
It is difficult to determine your rights under an agreement without examining the agreement. However, most such policies apply to employer actions, that is an employer's decision to eliminate a position or reduce staff. A voluntary resignation will most likely not be covered under the policy.
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