Q. Our company is about to have a layoff. Are we required to pay severance to the employees we lay off?
A. No. North Carolina law does not require severance payments to laid-off employees. However, this could be different if the company has a collective-bargaining agreement or an employee has an employment contract that provides for severance pay.
Although the law doesn’t require severance pay, employees are entitled to unused and accrued vacation benefits, unless such benefits are forfeited pursuant to a properly distributed company policy concerning forfeiture of vacation benefits.
If a company voluntarily elects to pay severance, it can require that employees sign a release for any potential employment claims against the company. The severance pay will also defer when employees may begin receiving unemployment benefits by the length of time the severance compares to regular wages.
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/6993/if-we-have-to-lay-off-employees-is-severance-pay-mandatory "
- Make firing decisions locally so possible lawsuit can't morph into something larger
- Smaller raise can count as 'adverse action' that triggers lawsuit
- What Pennsylvania employers need to know about medical marijuana
- Employees, IRS challenge FedEx's driver classifications
- OK to fire worker who has taken FMLA leave--but you had better be prepared to explain why