Is the Discharged Employee Entitled to Severance?

Employees are only entitled to severance if provided for in an employment contract.

Severance, where provided for in a contract, can, especially with senior-level executives, be for quite a large amount of money. If there are severance provisions, typically there will be contractual definitions of termination for “cause”; in those instances, employees terminated for “cause” will usually not be entitled to severance.

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It’s Over: Ending the Employer-Employee Relationship in New York State

New York is an at-will state. If the employee does not have a contract entitling her to continued employment for a period of time and/or setting forth grounds necessary for termination, and if no discrimination is involved and the law is not otherwise violated, an employer can discharge an employee at any time for any, or no reason.

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