Legal Question in Employment Law in New York

current owner or new owner: who's responsable for severence pay

i live & work in nyc. the company that a work for is beening sold to a chineese owner in a week. i've worked there for over 25 years. i was wondering if the company current owner has to pay it's current workers a severence pay for the amount of years i've worked there. the union is telling us that the new package should come from the new owner not the current owner. the new owner is moving the company to china and will stay in nyc for three months. So who is responsable to give us workers the severence pay the new owner or the current owner.


Asked on 2/20/03, 3:33 am

1 Answer from Attorneys
Brendan Chao Brendan Chao - Attorney & Counselor at Law

Re: current owner or new owner: who's responsable for severence pay

An employer is not required to pay its employees severance when their work terminates. An employer may agree to pay severance and be bound by that promise. Depending on the size of the company, there is a federal statute that protects employees from mass layoffs without appropriate notice. In that instance, an employer may have to pay severance to compensate for the lack of notice.

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Answered on 2/20/03, 10:16 am


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