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A severance agreement from an Illinois company contains a…

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A severance agreement from an...
A severance agreement from an Illinois company contains a clause that says the company can terminate severance payments if the former employee gets another job. Is this legal?
Submitted: 2 years ago.Category: California Employment Law
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2/23/2016
California Employment Lawyer: LawTalk, Attorney replied 2 years ago
LawTalk
LawTalk, Attorney
Category: California Employment Law
Satisfied Customers: 37,876
Experience: I have 30 years of experience in the practice of law, including employment law and discrimination law.
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Good afternoon Peggy,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

Severance pay in IL is not mandatory under the law. That means that the terms for severance pay are almost always based on a contractual agreement between the employer and employee and the employer is free to condition severance payments on the employee no being employed during the term that the severance payments are being made.

So, yes, a company that contracts with the employee to terminate severance if the employee becomes employed is legal under IL law.

I understand that you may be disappointed by the Answer you received, as it was not particularly favorable to your situation. Had I been able to provide an Answer which might have given you a successful legal outcome, it would have been my pleasure to do so.

If you have additional questions, you may of course reply back to me and I will be happy to continue to assist you further until your questions have been answered to your satisfaction.

Would you please take a moment to positively rate my service to you based on the understanding of the law I provided by clicking on the rating stars---three stars or more. It is that easy. That is the way I am compensated for having helped you.

Thank you in advance. I wish you the best in your future,

Doug

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DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

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