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Taxes on employers fund unemployment compensation benefits and each state administers. For at-will employees, unemployment compensation benefits fill a function similar to severance pay, providing cash when needed most.
Employers can offer a Severance Pay Plan as an employee benefit, but most do not.
For employees covered by a severance pay plan, ERISA means that they will know what severance they should receive and under what circumstances.
Union employees covered by a collective bargaining agreement (CBA) could receive severance pay if it is a negotiated benefit in the CBA.
"Good reason” looks at changes made by the employer to the employee’s working conditions, like a reduction in pay, loss of responsibilities or a downgrade in title.
If an employer fails to pay severance promised in an employment agreement, the employee can pursue a breach of contract claim.