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I think my employer is violating my employment contract by not providing a severance, how do I go about this?
I’ve been working at a company for the past 4 years which has recently shut down. On my employment contract terms, there was a severance agreement which states that severance would be paid if I become laid off or if they close down but they have not paid anything. I believe this is a breach of employment contract and breaks severance pay laws. How do I go about this?
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Answers (1)
A valid employment contract is an enforceable agreement that is binding on both parties. When parties sign these documents, the agreements contained within the contract become binding on both sides. For example, the employee may agree to work for a specific period of time, while the employer agrees to provide a certain salary, benefits, and financial payments if the relationship ends. As with any legal contract, however, the devil is in the details. The wording of the agreement will determine exactly what each party will receive at the end of the relationship end and may exclude payment under certain circumstances.
If your employer contract agreement qualifies as a binding contract, the terms of the contract will what (if any) severance payment you should receive. However, contract disputes center on the contract’s language and your specific situation. You should have an attorney review the contract and describe your situation to him or her. The attorney will then be able to determine if you can recover any severance pay and can tell you the best method for doing so.
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Posted by Jeff Rickman on 21 Jan 2010
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