There are a few loose ends you’ll want to wrap up before leaving your job, whether you’re leaving freely or because of a termination or layoff.
What follows is information concerning your final paycheck, health insurance through COBRA, and unemployment benefits.
Obtain legal advice from an Employment Discrimination Lawyer who is experienced in handling your specific case.
Severance Pay: What Is It?
Severance pay is the money provided to workers who are let go from their positions for no apparent reason.
Severance pay is not required by law for most businesses who dismiss or lay off employees. (Some states mandate wage and benefits continuation for a set period of time for companies that lay off a large number of workers due to a plant closure or other mass layoffs, but most do not.)
Nonetheless, many companies provide severance packages to workers who are terminated or laid off. Severance pay is often calculated as one week’s salary for every year of employment, however some companies are more generous to long-term workers based on other factors, such as seniority or tenure.
When must you pay a severance package?
There is no legal requirement for severance compensation, however your employer may be compelled to pay you severance if they have made a promise to do so, such as in:
a legally binding agreement from your employer guaranteeing you a separation payment.
the company has a lengthy history of providing severance to previous employees in your position, the company has made an oral pledge to pay you severance, or the company’s handbook or manual explicitly states that you will receive severance compensation if you leave the company (however, proving the promise was made may be difficult).
At what point in time will you be receiving your final paycheck?
The timing of a departing worker’s final paycheck is governed by state legislation in certain cases. Whether you have been let go due to layoff or termination can affect the length of notice you are given.
Some states, for instance, mandate that workers be paid their final wages immediately or within a set number of hours upon termination or layoff, but not until the next regularly scheduled payday if they voluntarily leave their positions.
Some of these rules also address whether or not you are entitled to receive any vacation money that you have earned but have yet to spend.