Legal Question in Employment Law in Massachusetts
is severance pay required by law
My company was sold to another.
Effectivly my former company ''went out
of business '' The new company chose not
to take me. I was laid off by my former
company as a result.
We all got paid our leftover vacation
and sick pay before we left. now I am
hearing that they should have given me
severance pay unless they went bankrupt.
They did not go bankrupt.
Is this true and should I do anything ?
1 Answer from Attorneys
Re: is severance pay required by law
There is no law requiring severance pay. Under certain circumstances (if the company is large enough and the layoff is large enough and a bunch of other factors exist), it is possible to trigger the WARN act which requires a certain notice period prior to termination. It is also possible that the company could contractually agree to pay severance even though there is no legal obligation otherwise to do so. In the absence of these factors, there is no legal requirement that a company pay an employee severance. (By the way, they also didn't have to pay you for your sick days either, just your vacation time.)
Evan
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