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If your company offers you a severance and you find another job can they stop paying your severance?
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If your company offers you a severance and you find another job can they stop paying your severance?


Not unless you have some kind of a signed agreement that says they will only pay you the severance for a specific period of time or until you find another job. Which would be very strange to see in a signed agreement.

No. They can't.

TK 2007
No, severance is an agreement that they've given you to pay you for leaving. Don't tell the old company you got a job anyhow, it's none of their business!

Generally a severance is a payment to go away. It is not normally contingent upon staying unemployed. If you have a non-compete clause in your severance, they could hold it up if you take a job with a competitor.

No, you take it in one lump sum no matter how many options you have. This way you control the money. I hope that's what you do.

Severance pay has nothing to do with a new job...it only concerns your old job. If they are willing to pay you severance TAKE IT...and take the new job too!

nope. that is already due to you. unemployement insu is another story.

Ralph N
no, take the money and run. find out the last day they need you. Ask for lump sum. Take a few days vacation. Then start new job. Donot tell your old job anything.

Nope... its yours to keep.

mary k
NO! But you can be denied unemployment benefits!

I saw this happen, they stopped paying someone his severance when they found out he was working somewhere else but I don't know if its legal or not.

Severance pay is for leaving a job at the request of the company because a closure or downsizing but not of your choosing. Severance payment is an incentive to retire volentarily. If a company retracts this offer then they would legally be required by the state to pay unemployment until new employment is established.

Severance is not covered by any State or Federal Law in the U.S.

The question would be answered in the "Severance Agreement".

If the "Severance Agreement" states that "severance pay will stop upon securing other employment then yes.

And it is totally at the Company's discretion as to whether to pay severance in one sum, or continue it out for the number of normal pay periods. The employee does not have a say in how it is paid.

Tall Green Alien
If there's no reason to tell them you found a new job, I wouldn't, or they might be tempted to screw you around.

There should be a set period of time for you that is agreed upon in the severance package terms and conditions. You would have to wait for that period of time to pass before accepting another position.

You're gonna love my nuts
Why would they stop paying are you supposed to sit around and not look for a job?

I lost my job in nov 2010, i was given a severance of 68 weeks. It is not a lump sum but am getting paid bi-weekly. In my contract it says if I find a new job I have to contact my old employer and they will pay me the remainder of the severance less 50% less taxes. If i don't tell them I have a job, will i be in big legal trouble?

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