Does NJ Law Guarantee Me A Severance Package?

By Thomas McKinney

One of the most frequent questions we receive from our clients is whether their former employer is required to offer them a severance package or whether they are entitled to a certain amount of severance pay.  The answer to both is NO.  Unless the former employer has a policy, contract or handbook requiring the payment of severance, the employer is not required to pay the employee any severance.  An employer typically offers severance pay in order to have the employee sign a release of all potential claims and to possibly guarantee that the employee does not disparage or compete against the company.  These provisions may be included in the severance agreement in many different forms and may be disguised under a “Confidential Information” section.  We highly recommend that you contact an employment lawyer before signing a severance agreement.

For more information, read New Jersey Employees Are Not Guaranteed Severance Pay.

Dated: February 6, 2010 – Tom McKinney – Castronovo & McKinney – New Jersey Severance Attorneys

About the Author
Tom McKinney is an experienced NJ Employment Lawyer in all major areas of labor and employment law, including discrimination, harassment, overtime violations, wage and hour claims, sexual harassment, wrongful discharge, Title VII, ADA, ADEA, FMLA, LAD, FLSA, and all other employment law claims. Tom is admitted to practice in the States of New Jersey and New York, United States District Court for the Eastern District of New York, Southern District of New York, District of New Jersey, and United States Court of Appeals for the Third Circuit. Prior to forming the firm, Tom practiced at Gibbons P.C. in Newark, NJ. If you have any questions regarding this article, contact Tom here today.