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Entitled Severance Pay

April 10th, 2020

The recent Coronavirus (COVID-19) pandemic has caused an abrupt spike in unemployment rates. Over 10 million people have filed an unemployment claim in the last few weeks. Due to the COVID-19, many people have lost their jobs and are in need of financial help and severance pay.

Unfortunately, severance pay differs by job and could be much lower than what employees were initially expecting. Restaurant workers have been receiving severance based off their wage rather than total salary, including tips. This is quite a difference in pay and can cause major financial problems. There are also reports that people are receiving no severance at all. To further understand severance, you must know the different layoffs that can occur. Your entitlement to severance depends on how you have been laid off.

  • Temporarily furloughed: No severance due to remaining an employee of your company.
  • Temporarily laid off: May still be entitled to existing benefits until the company can no longer afford them.
  • Laid off: Able to receive severance pay.

Severance is not considered mandatory and many companies refuse to pay it. Make sure that you read over your employment contract to see if your company’s severance pay policy is outlined in the document. If you do not have an employment contract, it may be difficult to figure out if you will receive severance from your employer. In all cases of unemployment, you should apply for unemployment insurance to receive compensation for being laid off during this difficult time.

Many companies are sympathetic toward their workers during this time, but if that is not the case, contact the Philadelphia employment lawyers at The Gold Law Firm P.C. today to ensure you are receiving the benefits you deserve. Call us today at 215-569-1999 or contact us online for a free consultation. With offices in Philadelphia and Pennsauken, New Jersey, we serve clients throughout southeastern Pennsylvania and South Jersey, including Wilkes-Barre, Scranton, northeast Philadelphia, Bucks County, Chester County, Delaware County, and Montgomery County.

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