If you work for a company that goes bankrupt, do you get a severance package.?
So if you are a Salaried employee at a company do you get a severance package, is it up to the company or is there some kind of law stating that you are entitled a severance.
I have an interview with Sears for Assistant Store manager of their Home Improvement department, I used to work there 4 years ago but as a part time hourly associate, and although I know Sears isn't doing too good it would be a decent opportunity for me.
A Hunch2017-04-26T00:34:54Z
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There is a Federal law called the: The Worker Adjustment and Retraining Notification Act Which is really a layoff law not a retraining law.
I don't remember all the details. But the company is X size (Sears meets this) and is laying off a certain percentage of workers, the company must provide you 60 days notice or 60 days pay. - If all of Sears dies, you would be covered. If specific stores close, you would be covered. But if random people are laid off you might not qualify.
Severce isn't required by law, even if the company is not bankrupt. It would be rare to get severance from a bankrupt company - they're broke. Sometimes you don't even get all the wages you've earned
Hard to say -- it depends a lot on how much the receivers can salvage from the company assets. Yes, you would be entitled to some form of severance pay, based on how long you have worked for the company. But the funds have to be there to make such payments. Employees are essentially unsecured creditors, unless there is a severance pay agreement.
It might not apply, but take a look at: http://www.myglaw.com/blog/2011/11/salvaging-severance-pay-after-a-company-files-for-bankruptcy.shtml