Some employment contracts require that the employer pay an employee a severance package before terminating their employment. Those who are dismissed from their jobs need to know what they are entitled to based on employment contracts. On the same token, employers – whether it is a public or private entity – also need to know what the contracts require of them. In some cases, the parties may have a legal disagreement over whether or not the contract should be paid.
A Michigan city manager who was fired from his job will receive $50,000 in severance as part of his employment contract. The man, who was dismissed on January 19, is allowed to receive six months’ pay. He can either continue receiving health coverage for himself and his family or he can take a payout of an equal amount. For its part, the city has hired a legal representative to protect its interests. When he was fired, the manager’s salary was $102,000.
According to his personnel file, his tenure is viewed as a successful one since he was hired in 2011. However, he was said to have had lapses in communication and other problems. He was also accused of being a micromanager and failing to adequately lead. The man was fired by the city’s new mayor as well as three new members of the city’s leadership. The former manager was confronted with allegations of unfair labor practices when he gave raises to non-organized employees and did not give similar raises to the guild staff. This raised allegations that the action was a gesture of punishment to those who unionized.
This case is one that could become contentious based on the circumstances of the termination and that the city is required to make the $50,000 payout. If there is a dispute over the employment agreement, whether or not the city has to pay given the reasons for the termination or the man tries to fight any attempt not to pay him, it could involve litigation in a court of law.
With any situation in which there is a termination, a disagreement over the requirements in an employment contract, compensation and severance, it is important that all parties protect themselves with assistance from an experienced attorney.
Source: mlive.com, “Firing manager will cost Michigan city at least $50K severance,” Nate Reens, Jan. 28, 2016