Hey there, so maybe ya'll can help me.
A little back story:
I am located in the USA and my contract has a clause that my company needs to pay me 3 months severance if they fire me w/o cause.
I was recently fired w/o cause because the company thinks they are going under. I was told that I either had to sign away my benefit and go to “at will” (I think it's called) where they require zero notice, or I would be fired on the spot. This is to avoid having to pay me anything after the company folds in a few months.
I said I wasn't signing away my 3 month severance and was instantly given my written notice that I was to be terminated in three months. They want to get as much work out of me as possible to try and salvage what they can, but the problem is I am exhausted (I've had some health things pop up because of work that's making it really hard to keep up with anything at all) and need to slow down and recover before looking for my next job.
The wording in my contract makes it sound like they have to pay me severance, and that I don't have to wait out a notice period, but they need to pay out to close the contract.
My question is this: Will I be entitled to 3 more months after I am officially “let go” or does this working notice they are enforcing hold water? Do they need to just pay me severance and let me go?
Here is the exact wording:
“If, during the Term, your employment is terminated by the company without cause or by you for Good Reason, you will be entitled to a payment of an aggregate amount equal to 3 months of your Base Salary, payable in equal installments over a 3-month period following the termination of your employment in accordance with normal payroll practices of the company, effective on the date of termination.”
(Note: some of the health issues I am facing right now are accumulative due to a lack of insurance as the company hasn't been able to fulfill this part of my contract. I haven't been able to afford medicine that manages some chronic symptoms I have which has lead to a lapse and working is becoming difficult. I need to take time to just be sick and rest while seeking out state healthcare and my next job. I'm very tired, very frustrated and feel very desperate.)