View Full Version : parents, subsidiaries, and severance packages
12-10-2003, 02:50 PM
can a subsidiary provide a severance package that has less benefits than the package its parent provides? does this question make sense?
12-10-2003, 03:36 PM
actually, i had a friend go through a layoff in a similar situation.
i'm not an employment attorney, but i think it severance is different because it is not a "right" as is welfare or pension. severance is optional so there are no legal requirements of "fairness". if the subsidiary was bought and severance promised before the subsidiary was bought, it might be different.
disclaimer: i have no clue what i'm talking about. just what i heard from my friend.
12-10-2003, 03:54 PM
ok...that kinda sounds right but i'm still confused.
12-10-2003, 04:11 PM
I just took my corporations exam today. You're in luck.
And K-boy is right.
Plus, subsidiaries can do wwhatever they want as long as they are independent of the parent as far as board membership...stuff like that.
12-11-2003, 10:58 AM
i think number of employees also matter.. in terms of what type of severence a company is mandated to have.
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