Re: Changing severance polices

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On 12/17/06, Chris wrote:
> A friend of mine works for a non-profit that has updated
> their employee handbook. The handbook has always stated
> that the policy is employment at will. A few of the
> workers there have been there over 20 years. The previous
> handbooks have always stated that severance would be given
> based upon the employee's seniority. The new handbook
> says no severance will be given to anyone. None of the
> employees have yet to sign anything acknowledging they
> have received the new handbook. Should they refuse to
> sign? Will it make a difference - should they be laid off
> could they now be denied any severance at all? I'm an HR
> professional but I deal mainly with compensation issues
> and it has been a while since I have had any employment
> law classes! I know in a Union environment employees can
> refuse to sign and not be threatened with termination but
> can non-union employees do the same? Can they really
> change severance benefits after promising them for 20
> years. Thanks for your help!

Yes, the employer can legally change their severance policy
any time the employer wishes to do so. (a) No employer is
ever obligated to provide severance pay, and (b) company
policy is always subject to change at any time, with or
without notice. Whether the employees sign the handbook
acknowledgement has no bearing on the employer's ability to
enforce the policy changes.