Legal Question in Employment Law in Michigan

Employer Severance Obligation

I own a small company that is now merging with a large corporation. Most of my employees will not be part of the agreement and have been told that they are losing their job. I verbally told them that I would give them one week severance and one month paid health insurance even though the large corporation did not want me to do so. Some of them decided that they would steal valuable equipment from me (thousands of dollars worth), I guess to help them financially or just out of anger. Now I'm the one whose angry and don't want to pay the severance and health insurance because of these vicious acts. Though I never put my original intentions in writing, am I legally obligated to fulfill the severance and benefit payments?


Asked on 5/29/03, 7:15 pm

1 Answer from Attorneys
Regina Mullen Legal Data Services, PLC

Re: Employer Severance Obligation

Your employees are probably at-will, but depending upon your size, you may have an obligation to give them a certain amount of notice on laying them off.

Here's a link to the law I'm thinking of: .Certainly, you want to consult a specialist in this area, because the danger of a lawsuit is very real, especially when you've made promises. You may find that you have no duty to employees who have stolen from you (you certainly have the right to fire employees who steal from the company, outright). The company you're merging with should certainly also weigh in on it, whether they like it or not, because the weight of whatever happens will probably fall on them as the successor organization.

Read more
Answered on 5/29/03, 9:36 pm


Related Questions & Answers

More Labor and Employment Law questions and answers in Michigan