Does an employer have to pay severance pay when terminating an employee?
No, unless the employee and employer had an employment contract that specifically indicated severance pay would be paid under such circumstances, or the employer prematurely terminated an employee’s work contract that was still in effect. In Illinois, employers may generally terminate employees with or without good reason. There are circumstances, however, when it makes sense to offer employees severance pay, most often for security against future litigation by a disgruntled employee. Employees should wisely consider severance offers, and consult with an attorney to determine whether an offer is reasonable under the circumstances, whether they may be able to obtain a greater figure, and what rights they may/will lose if they accept such severance amounts. Under certain circumstances, an employer’s failure to include key language in such an agreement can invalidate the entire agreement, even if the employer has already paid the ex-employee under the terms of the agreement. Our office ha
Related Questions
- How soon must an employer pay wages to an employee after terminating the employment of an employee? How soon if an employee resigns?
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- Does an employer have to pay severance pay when terminating an employee?
