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When are employers legally required to pay severance?

Like most members of the Ohio workforce, you probably believe that severance payments are voluntary on the part of employers. This is certainly the case in most employment situations. However, there are times when the law requires employers to compensate workers upon the termination of their employment. When employers fail to do it may be possible to initiate a formal severance dispute, which can help you make ends meet until you find a new job.

If you held a C-Level, or executive, position within your company, you probably have a contract outlining the terms of your employment. In most cases, these agreements contain provisions detailing your right to severance pay. Obviously, this is one scenario in which an employer is legally bound to provide severance. Three situations in which you may qualify for severance pay without a contract include the following.

  • When your company's employee handbook or personnel policy promises severance pay upon termination
  • When your employer makes an oral promise to you that you will receive a severance package upon your termination
  • When the company for which you work has established a history of providing severance to terminated employees in circumstances similar to yours

As you may already realize, you will likely benefit from legal assistance in severance disputes based on the situations described above. This is particularly true if you did not have an employment contract to protect your rights. A lawyer can help you determine if you do qualify to receive a severance package. From there, they can offer you guidance on how to proceed with your severance dispute.

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Law Offices of Tony C. Merry, LLC
7100 North High Street
Suite 302
Worthington, Ohio 43085-2567

Phone: 614-372-7114
Fax: 614-505-6109
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