Severance terms from law firms

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Severance terms from law firms

Post by Anonymous User » Tue Apr 14, 2020 6:44 pm

It seems like during the waves of layoffs in 2008-09, firms offered between 3-6 months paid severance and health benefits (I could be wrong here what market standard was).

If someone lucked out and got a new job, say, 2 months after the layoff, would they be able to collect their new salary AND the severance? Do you automatically lose your severance upon beginning new employment?

Anonymous User
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Re: Severance terms from law firms

Post by Anonymous User » Tue Apr 14, 2020 6:51 pm

Anonymous User wrote:It seems like during the waves of layoffs in 2008-09, firms offered between 3-6 months paid severance and health benefits (I could be wrong here what market standard was).

If someone lucked out and got a new job, say, 2 months after the layoff, would they be able to collect their new salary AND the severance? Do you automatically lose your severance upon beginning new employment?
Some severance agreements (not necessarily from law firms) say that you have to pay back all or some of the severance if you find a new job before a certain date. Otherwise, you do not have to pay back the severance. Severance pay is based on a contract and the terms of the severance agreement.

kaiser

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Re: Severance terms from law firms

Post by kaiser » Wed Apr 15, 2020 10:35 am

Usually you receive the severance regardless of whether you obtain a new job. But it all depends on the contract terms you agree to.

Anonymous User
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Re: Severance terms from law firms

Post by Anonymous User » Thu Apr 16, 2020 11:20 am

Anonymous User wrote:It seems like during the waves of layoffs in 2008-09, firms offered between 3-6 months paid severance and health benefits (I could be wrong here what market standard was).

If someone lucked out and got a new job, say, 2 months after the layoff, would they be able to collect their new salary AND the severance? Do you automatically lose your severance upon beginning new employment?
FWIW, my firm/group's data point. The couple people fired from my group that I was close friends with were given 3 months pay as severance in exchange for signing an NDA (or something like that, I haven't seen the contract myself). I don't think there was a clawback for obtaining other employment.

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