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Can one collect severance pay and start new employment at same time?

Asked Dec 12, 2010, 12:09 PM — 5 Answers
I just got notice of AJWright closing all it's stores & warehouses...I work in the warehouse. Can I collect severance pay and start a new job at the same time ? IF severance pay is considered paid salary I would think I can't ?! Would I bet better trying to get a 'lump sum' settlement ?
Thank-you

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tickle's Avatar
tickle Posts: 19,331, Reputation: 12341
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#2

Dec 12, 2010, 12:13 PM
I would go for the lump sum settlement. That would give you free reign to pursue other employment with a little nest egg.

Will you still be working at AJWright while they are winding down? Is that what the severence pay is covering.

Severance pay is given when you are let go and terminated and not going back, so in that case you could collect and pursue other employment.

Tick
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ScottGem's Avatar
ScottGem Posts: 58,102, Reputation: 28145
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#3

Dec 12, 2010, 12:29 PM


Severance pay is not contingent on new employment. So you can certainly start a new job. If you think you can find work quickly, then I would take the pay not a lumpsum, especially if the lump sum will be less than the total payment.
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Fr_Chuck's Avatar
Fr_Chuck Posts: 72,607, Reputation: 37026
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#4

Dec 12, 2010, 02:02 PM


Agree with Scott, severance pay is merely pay to you for the time and effort you put in while at work and to help in the transition. So unless there is some clause in the paper work about other employment, there is no reason you can't collect both ( it is not unemployment (
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tickle's Avatar
tickle Posts: 19,331, Reputation: 12341
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#5

Dec 12, 2010, 02:56 PM
One never knows nowadays. Severance pay is exactly as it states, severance which means to sever, cut. I got it a couple of times, and it was a lump sum, because the previous employer could afford it and didn't need remedial workforce to close down.

Tick
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BEB123's Avatar
BEB123 Posts: 2, Reputation: 10
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#6

Dec 15, 2010, 06:50 PM
Thank-you for such helpful answsers. These are tough times for sure.
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