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Does Everyone Get Severance After Being Fired?

Getting the news that you have been fired or let go can be a devastating blow. You may worry where your next source of income will come from, how you will pay your bills, how you will feed your family.

In some cases, a severance package may help you bridge the gap between jobs financially. Learn whether everyone who gets fired is entitled to a severance package.

How Does Severance Work?

Utah is an “employment-at-will” state, which means that an employer may terminate an employee for any time and for any reason, unless a law or contract prohibits it. This may include lay-offs or firings.

Generally, if an employee is laid off, they will receive a severance package. This is a financial bundle meant to soften the blow of missed paychecks until the employee can find another source of income. Severance packages may be a lump sum, but you may also choose to have the payments spread out in some cases.

If an employee is fired, on the other hand, it is unlikely they will receive a severance package. This is particularly true if the employee is fired for serious misconduct. However, some employers choose to give a fired worker a severance package to get them out of their hair.

To that end, it is important to understand that accepting a severance package often means giving up some of your rights. Many severance packages require the recipient to sign a non-disparagement and non-compete agreement, and prohibit the recipient from taking legal action against the company in the future.

Need Help with Employment Law Matters? Contact Us Today

If your rights as an employee in Utah have been violated, Pearson Butler is here to help. We understand the devastating consequences that workplace discrimination or harassment can have on a person, and we make it our mission to set things right. We encourage you to contact us to learn how we may help you move forward.

Call Pearson Butler at (800) 265-2314 to schedule a consultation.