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I was wondering if anyone would have any insight into this situation:

 

A few months ago, my company announced they were going to shut down the location where I work and move out of state. They have locations all over the US and many places outside the US and are looking to cut costs by consolidating/relocating certain parts to a lower cost part of the US.

 

If we're interested in relocating we are required to post for our jobs. I am unable to relocate so I'm putting together my resume and looking for another job. Our group hasn't been told officially, but the word is our positions will transition to this new spot by 2nd quarter 2014.

 

Anyway, I was wondering if anyone has faced this situation and what happened/what can the company legally 'get away with' regarding separation for those who decide not to post for their job and relocate. Would that be considered 'resigning' and the employee is left with nothing or is the company obligated to give severance? I am concerned once they know I'm not relocating that when the end comes they'd consider my decision as a resignation and I'd get nothing.

 

I don't plan to wait around to get the money, (If I got it it would be nice since I've been there a while) I am looking and have a good amount of time but I am interested in knowing if anyone has faced this situation and what was the outcome, what did the company do if you're still there when the end date for the group in the old location comes.

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  • 2 weeks later...
BrokenPrincess

Companies are not legally required to pay severance, except maybe in a few states. My husband's employer gave them 4 months notice that they were closing his division (and moving it to another country so no relo). At the time of announcement, they offered a minimal severance (2-3wks pay) to anyone who wanted to leave before then, or the full severance (2 months pay) if you wait out the 4 months. It was actually really smart because it gave extra incentive to leave early. The downside for the company was the remaining staff had no morale and no motivation to cover all the increased workload from the people who left already.

 

I'm not sure but I think if the job is posted in a new city (like 100 miles) it is considered a different job so your situation would be considered layoffs (also why you'd have to apply for the same position).

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Technically, then, they are laying you off. They are only obligated on how much notice they give you based on the size of the office site/location but the government does not mandate any financial severance.

 

We do offer a severance in most lay offs, or will do a reassignment to a nearby location if feasible. I would ask HR what a lay off would entail, do they offer job seeking services, resume writing, etc. and any financial compensation?

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