Severance pay status after acquisition and refusal to accept retention agreement

[m_as77]

As a salaried employee in NY, I have a signed contract that offers severance pay - for four months - if my employer X terminates my employment without cause. Contract also include two months of notice if either party decided to terminate employment. My X employer has been acquired by employer Y that's based in CA and Y has offered me retention agreement - for nine months - that's not favorable - overall compensation is lower. Y informed I would remain X employee during retention. My preference is to move on; however, I would like to know my options.

Is my contract with X still legally binding and enforceable?
Could I refuse to accept Y's offer?
Do I still have to serve two months of notice?
Would this be ground for termination?
Would I get severance pay?

 

[adjusterjack]

No one here can answer any of those questions without reading the contract. If there is a lot of money involved it would be worth it to you to have an employee attorney review the contract and advise you about your options.

 

[LdiJ]

As a salaried employee in NY, I have a signed contract that offers severance pay - for four months - if my employer X terminates my employment without cause. Contract also include two months of notice if either party decided to terminate employment. My X employer has been acquired by employer Y that's based in CA and Y has offered me retention agreement - for nine months - that's not favorable - overall compensation is lower. Y informed I would remain X employee during retention. My preference is to move on; however, I would like to know my options.

Is my contract with X still legally binding and enforceable?
Could I refuse to accept Y's offer?
Do I still have to serve two months of notice?
Would this be ground for termination?
Would I get severance pay?

I agree with AJ, you need a consult with an employment attorney who can review your original contract and what you are being offered now.

 

[quincy]

As a salaried employee in NY, I have a signed contract that offers severance pay - for four months - if my employer X terminates my employment without cause. Contract also include two months of notice if either party decided to terminate employment. My X employer has been acquired by employer Y that's based in CA and Y has offered me retention agreement - for nine months - that's not favorable - overall compensation is lower. Y informed I would remain X employee during retention. My preference is to move on; however, I would like to know my options.

Is my contract with X still legally binding and enforceable?
Could I refuse to accept Y's offer?
Do I still have to serve two months of notice?
Would this be ground for termination?
Would I get severance pay?

I can answer ONE of your questions without reading your contract.

Question: Could I refuse to accept Y’s offer?

Answer: Yes. You always have the right to refuse offers of any kind. But there probably are consequences for you if you do.

Like adjusterjack and LdiJ, I also recommend you have your contract with X and the retention agreement with Y personally reviewed by an employment law attorney in your area. We cannot analyze contracts on this forum.

Good luck with whatever decision you decide to make.

 

[m_as77]

Thank you everyone and as advised I would consult with employment law attorney to discuss available options.

 

[quincy]

Thank you everyone and as advised I would consult with employment law attorney to discuss available options.

That would be smart.

We all appreciate the thanks, so thank you. Good luck.