Legal Question in Employment Law in Illinois
Supplemental Severance reduced, for some, after plan to layoff put in place
My employer began an exercise in Dec to reduce costs by involuntarily severing employees. At that time a plan was developed to layoff employees on my team in Jan and to layoff further employees later in the year unless business results were turned around (in which case later employees would not be eliminated).
In Feb the employees who were in the �first round� were informed and provided with a severance package. The employer is now saying that the severance plan has been analyzed against competitors and needs to be reduced. Those employees that the company planned to layoff later in the year (but were not informed yet) will receive the �new� reduced supplemental severance package.
Is it legal for a company to plan a layoff and then consequently reduces the supplemental severance package such that half of those employees (in the second half of the plan) receive a smaller package than the larger package given to employees who were laid off during the early portion of the plan due to timing of when the employees are informed that they are no longer needed?
1 Answer from Attorneys
Re: Supplemental Severance reduced, for some, after plan to layoff put in place
In a vacuum, I would say it probably is permissible for the employer to reduce the "supplemental" severance package. That being said, if you are let go, depending upon your protected status and other facts, you may have an actionable employment claim. Kindly provide your contact info to me at [email protected] so that we can discuss this further.
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