Q. Can we reduce the severance amounts cited in employment agreements we have with certain staff as long as we notify them of the change?
A. You can’t unilaterally reduce the severance amounts in employment agreements that have already been signed. Typically, you can modify those agreements only with a written document signed by both parties.
You can ask employees who have existing employment agreements to enter into new agreements. You can also modify your severance policy prospectively to reduce the severance formula, going forward.
Absent a provision in an employment agreement, a severance policy or established practice, there is no independent obligation for employers to pay severance of any amount.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/13434/how-should-we-go-about-changing-severance-pay-policies-spelled-out-in-employment-agreements "
- Beware suspicious timing when taking action against employee undergoing medical treatment
- Genetic information and testing under Michigan law and GINA
- Houston manufacturer settles bias lawsuit with 78 employees
- No self-defamation claim possible in North Carolina
- Keep the faith: You can accommodate religions in the workplace