Severance Payment

[Brady2]

What is the name of your state? Maryland

I am an executive at at a mid-sized company that is in the process of being acquired.

When I started with the company, the CEO and I agreed in writing to the following:

"if I am terminated for any reason, other than for gross negligence in my job duties or for a criminal offense, I will be paid three months severance". THATS IT.

When this company is sold, I will continue to work for the new company for about 6 months to help with transition, and then I will be terminated by the new company.

At the time of the merger, because my agreement states that I will be paid severance if terminated for any reason, I feel that I am entitled to collect the three months severance.

If my current company comes back and says my agreement was assumed by the new company, do I have grounds to collect my severance. I really don't want the new company to assume my severance agreement bacause I'm afraid they will force me to quit by making me relocate or by reducing my salary.

Thanks

 

[Beth3]

"At the time of the merger, because my agreement states that I will be paid severance if terminated for any reason, I feel that I am entitled to collect the three months severance." It appears you are saying that you believe you are entitled to severance at the time the sale is finalized, even though your employment will be continuing.

"If my current company comes back and says my agreement was assumed by the new company, do I have grounds to collect my severance." Collect it when? Right away?

Without seeing the original severance agreement and also the purchase contract, I doubt anyone can advise you with any certainty. What I can tell you is that if you feel you are entitled to severance at the time of the sale and decide to take legal action, even though your employment will be continuing, will likely cost you every penny of three months salary and then some.