Employment contract - severance agreement

Hi MEL,

I have recently being made redundant from my position, I do have a very healthy severance clause in my employment contract, which would expire in April 2008

They did offer me another position within the corporate group but with another company, and at a demoted level, however the salary was the same.

I was only given 2 weeks notice before termination, which was December 31st, and have been with this company 20 years.

At the moment I have had no severance or any other monies from this company, when would I expect a severance payment to come? and at what point do I have to decide to go down the legal avenue?

Would I be entitled to claim for contribution of legal fees, if they do not honor the employment agreement, and even seek additional severance pay, other than that stated in the contract.

I am talking with the corporation, but seems to be alot of stalling tactics.

2 answers  |  asked Jan 19, 2007 3:27 PM [EST]  |  applies to Illinois

Answers (2)

Anthony Cameron
Addendum

Above should have read "on or before" the next pay cycle.

Anthony Cameron
Quincy, IL

posted by Anthony Cameron  |  Jan 20, 2007 2:23 PM [EST]
Anthony Cameron
Documents Critical

The exact language on of the document granting you this severance would be critical to an analysis. Without that, no responsible lawyer could give you much of an opinion about this.

The generic answer about when you're supposed to be paid any funds arising from your employment is that the employer is required to pay you on or before the next regular pay cycle following your departure.

The generic anwer to whether one can get atty fees and costs in a wage claim situation is that Illinois had a wage claim act which sets up the availability of costs and atty fees for a wage claim. Two cautions: First, you have to follow the Wage Claim Act precisely to be eligible; Second; if you signed a document waiving Atty fees and costs, your agreement may waive your right to recover fees and costs under the Wage Claim Act.

My overall take here is that, if there is a good deal of money at stake, you are on the verge of "taking out your own appendix". Find a MEL atty in Chicago and have a consultation.

You'll be glad you did.

Anthony B. Cameron
Quincy, IL

posted by Anthony Cameron  |  Jan 20, 2007 2:20 PM [EST]

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