Legal Question in Employment Law in New York

Retrenchment Package

Hi,

On March 25 my spouse was offered a retrenchment program for voluntary leave from her company; the deadline for participants were April 6. She will be receiving compensation pacakges which include 6 weeks pay (# of years of service with her company), unused vacation and unemployment.

She submitted her form along with her co-workers on April 1. They have constantly asked what the update was and it seems that her company has given them a run-around. They were told that the company still hasn't decided what to do with the retrench program and they have to decide on the next Board meeting. It is quite certain that her company may eventually retract the offer.

My wife and her co-workers have all decided to leave the company by the end of April, but if they leave now, there is a high chance they will lose a couple of weeks of pay 'cause the retrenchment program *has not* been approved by the Board.

Can her company do this to them? Shouldn't they have decided before giving out the offer form to their employees?

Can they sue the company for the retrenchment package after they leave?

Thanks.

Jeff


Asked on 4/19/05, 7:26 pm

1 Answer from Attorneys
Mark S. Moroknek Kelly & Curtis, PLLC.

Re: Retrenchment Package

It all depends on the contract terms. NY does not recognize wrongful termination unless it is a breach of contract or a violation of Union rules, or law.

I have no idea what your spouse is. But if she is part of a union, she has to file a grievance there first. Regardless of whether or not she is a member of a union, some of the benfits could fall under ERISA, in which case there would be a federal lawsuit if the pension plan or other retiremnt fund is involved. Is the retrenchment plan written? Obviously there is a form but does it contain the terms?

It all depends on whether she has an employment agreement, and whether the retrenchment terms can be proven.

The thing most people don't understand about about employment law is that in an exploding field of litigation, the less said the better (from the employers' viewpoint)about why the employer did or didn't do something.

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Answered on 4/20/05, 12:51 am


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