Severance pay

Definition and stakes

Portrait of John Marshall Harlan II John Marshall Harlan II,  Republic Steel Corporation v. Maddox…

“ Severance pay and other contract terms governing discharge are of obvious concern to all employees, and a potential cause of dispute so long as any employee maintains a continuing employment relationship. Only in the situation in which no employees represented by the union remain employed, as would be the case with a final and permanent plant shutdown, is there no possibility of a work stoppage resulting from a severance-pay claim. ”
Source: Wikisource

Portrait of Anthony Kennedy Anthony Kennedy,  Litton Financial Printing Division Division of Litton Business Systems Inc…

“ Leaving aside the question whether a provision requiring all layoffs to proceed in inverse order of seniority would support an analogy to the severance pay at issue in Nolde Bros., which was viewed as a form of deferred compensation, the layoff provision here cannot be so construed, and cannot be said to create a right that vested or accrued during the term of the Agreement, or a contractual obligation that carries over after expiration. ”
Source: Wikisource

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