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    skwasha's Avatar
    skwasha Posts: 1, Reputation: 1
    New Member
     
    #1

    Feb 13, 2009, 03:03 PM
    Contracted raise, pay-cut, severance.
    I have an employment agreement that guaranteed me a increase (20%) at the end of my first year. The company has so far not responded to my requests to address the issue (it's well past my anniversary.)

    There is a clause in the agreement that states I can leave for cause if the company fails to honor the agreement and receive severance.

    Now I'm told the company will in fact honor the agreement through today (via a retroactive payout), but that beginning next week I'll be given a wage reduction back to the original level.

    If I refuse the cut and they in turn let me go, am I still entitled to the severance?

    Would I still be entitled to unemployment?

    What other options if any are open to me?

    Thank you.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #2

    Feb 13, 2009, 03:30 PM

    I would have to see the wording of agreement. Sounds like an interesting loophole, give you the raise, but then reduce your salary. I would consult with an attorney. I suspect the company has consulted with their attorneys and think they can justify it legally.

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