Ted Hollis Addresses Severance Policies in World at Work Article
Ted Hollis, an Indianapolis-based Quarles & Brady partner in the Labor & Employment Practice Group, was quoted in a World at Work article about why companies and organizations should offer severance packages when laying off employees, even if not required by law.
In the article, Hollis outlined situations when severance packages may be necessary and discussed the benefits to a company of offering severance. An excerpt:
Ted Hollis, partner at Quarles and Brady LLP, outlined the scenarios when severance could be required:
- A written employment contract/agreement or a collective bargaining agreement may contain a promise of severance pay.
- An employee handbook policy may obligate the employer to pay severance in certain circumstances.
- When there has been an oral promise of severance.
- If there has been a past practice of providing severance.
“Not providing severance is just bad PR and employees are able to bring many types of employment lawsuits as a result,” Hollis said. “There’s also benefits to doing so, as it can create goodwill with departing employees and current employees, and it helps the public image of the company.”