Was this a loophole the company found to avoid paying severance package?

[Kel24]

What is the name of your state (only U.S. law)? Washington

Hi everyone,

The company I used to work for decided to hire a third party agency to outsource my whole department. Instead of letting all of us go, the 3rd party agency offered us a job for at least 6 months (they said, they will have to figure out the job situation first so they couldn't guarantee if our jobs will be available). Few of my colleagues were let go because they didn't have any license but at least they got severance pay (they worked there for as long as I have). As for me, I was told that if I do not take the job offer, that basically mean that I quit. I thought about seeking a lawyer for an advice but I figured both companies have their lawyers involved also. Basically I was forced to take the job that was only guaranteed for 6 months and I was not given any severance package when I worked for the company for 12 years.

Just like the title said, was this a loophole they found so that they don't have to pay severance package? Do I have a chance of getting it if I bring this to court? Please advise. Thanks in advance.

 

[eerelations]

No this isn't a loophole, it's a perfectly legal and in fact, quite common practice. You cannot "bring this to court" because you have no case. You have no case because employers in the US are not legally required to provide severance pay to departing employees.

 

[Kel24]

No this isn't a loophole, it's a perfectly legal and in fact, quite common practice. You cannot "bring this to court" because you have no case. You have no case because employers in the US are not legally required to provide severance pay to departing employees.

Thank you so much for your response. I greatly appreciate it.

 

[cbg]

It is SOP for employers to offer severance only to employees who were let go. In 30-something years of HR I have yet to hear of a situation when severance was offered to an employee who refused a job offer.

 

[Kel24]

It is SOP for employers to offer severance only to employees who were let go. In 30-something years of HR I have yet to hear of a situation when severance was offered to an employee who refused a job offer.

I was discussing this with a family member and her argument was, even if I was offered a job, it is with a different company. To her, I was let go by the company I worked for and I was offered a job with a different company. I'm assuming that doesn't matter because I was still offered the same job?

 

[Chyvan]

I'm assuming that doesn't matter because I was still offered the same job?

Not really. It's unfair, and I agree that you got ripped off, but you can't make your existing employer pay you a severance. It wouldn't matter if they were letting two people go and gave one a severance and the other nothing.

In light of that, you can always try to be just as charming as possible and discuss this with your employer. They might really believe that they're doing you favor by sending you to the new company, and have no idea you'd rather have a severance. When they realize that you have different ideas, they might do what you want, but you can't really throw your weight around.

If you don't want to work for the new employer, the best you can hope for is to collect unemployment if the offer being made is unsuitable within the meaning of the factors that count by the UI people.

 

[eerelations]

I was discussing this with a family member and her argument was, even if I was offered a job, it is with a different company. To her, I was let go by the company I worked for and I was offered a job with a different company. I'm assuming that doesn't matter because I was still offered the same job?

It doesn't matter if you were offered a job by any company or if you were not offered a job at all. Your employer, like all employers in the US, is not legally required to offer you a severance package under any circumstances.

 

[cbg]

I was discussing this with a family member and her argument was, even if I was offered a job, it is with a different company. To her, I was let go by the company I worked for and I was offered a job with a different company. I'm assuming that doesn't matter because I was still offered the same job?

Even if you were offered a job with a different company, that still doesn't obligate your employer to pay severance. Severance is supposed to get you through a period of unemployment; not a windfall. If work is available to you and you turn it down, that's on you, not the employer. Why should they pay you to sit at home when there was work available to you?

I disagree with chyvan. I don't think it's unfair in the least.

 

[Kel24]

Not really. It's unfair, and I agree that you got ripped off, but you can't make your existing employer pay you a severance. It wouldn't matter if they were letting two people go and gave one a severance and the other nothing.

In light of that, you can always try to be just as charming as possible and discuss this with your employer. They might really believe that they're doing you favor by sending you to the new company, and have no idea you'd rather have a severance. When they realize that you have different ideas, they might do what you want, but you can't really throw your weight around.

If you don't want to work for the new employer, the best you can hope for is to collect unemployment if the offer being made is unsuitable within the meaning of the factors that count by the UI people.

Thank you so for your response and understanding Chyvan. You explained it very thoroughly and can completely relate to what i felt. I didn't understand any of this and now I do. I will just let it go and move on. Thanks again, I greatly appreciate it.

 

[Kel24]

It doesn't matter if you were offered a job by any company or if you were not offered a job at all. Your employer, like all employers in the US, is not legally required to offer you a severance package under any circumstances.

Thanks for clarifying this eerelations, greatly appreciate it!