Businesses generally need to ensure that they adhere to all applicable state and federal employment statutes when managing their workers. They also need to ensure that they adhere to the terms outlined in an employee’s contract as well.
Otherwise, workers could allege that the company violated their rights or possibly the law. They could also pursue breach of contract claims against current or former employers. Post-termination lawsuits are relatively common. They often involve allegations that an organization violated either employment regulations or the contract signed with a worker.
Can an employee who was terminated without severance sue their former employer for denying them severance pay?
The law does not impose severance obligations
Nothing in Florida employment statutes makes severance pay mandatory. There are laws regulating severance pay in cases where companies negotiate severance packages with their workers, but they do not make severance pay mandatory.
Typically, severance agreements include clauses that allow companies to deny a worker a contractually-promised severance package if the company terminates the worker for cause. If a professional fails to fulfill key responsibilities, does not meet performance metrics or has disciplinary issues that lead to their termination, their employer can generally justify the decision to withhold their severance package even if their contract includes provisions for one.
Employers generally have an obligation to uphold the terms of an employment contract, even at the end of a working relationship. Companies preparing to terminate an employee and companies facing claims from prior workers may need assistance.
From proper documentation to contract review, there are many steps businesses can take to minimize the risk of employees initiating litigation against a company. Partnering with an attorney familiar with complex business litigation can help companies limit their risk of and effectively respond to lawsuits brought by workers.