Is Illinois an ‘At-Will’ Employment State?
Yes, Illinois is an employment-at-will state. Under the employment-at-will doctrine, employers and employees have the legal right to terminate their working relationship without reason or cause.
While Illinois employers have the legal right to fire their workers with or without cause, they cannot make employment-based decisions to discriminate against an employee based on their race, religion, skin color, national origin, gender, ancestry, age, marital status, physical or mental handicap, military service, or other protected characteristics.
Many workers falsely believe that, so long as they continue to perform their jobs well, they have some security for continued employment. Because of this, many individuals think they have been wrongfully terminated if they are ever fired without cause. While it may be difficult to accept, being terminated without cause in an employment-at-will state like ours is not always the basis for a legal claim.
Are You Eligible for a Severance Package Under Illinois Employment Law?
Unless there is a written contract and agreement for termination with cause, Illinois workers are considered at-will employees. Even if not offered by a formal separation agreement, Illinois employees are always entitled to be paid any accrued unused vacation time. Beyond that, most employees have no legal right to separation pay or benefits unless an applicable separation plan details such an arrangement. You will find, however, that many Illinois employers offer separation agreements even though they are not legally required to do so, at times partially to avoid the unnecessary legal fees of potential litigation.
To qualify for unemployment benefits in Illinois, you must be involuntarily unemployed because you were either fired without cause or ended your employment for good reason. You are generally not entitled to severance pay. Individual employment contracts, company policies, and union collective bargaining agreements may establish terms for severance provisions that could apply to your case.
Employees fired for cause will find it more challenging to recover severance pay than those who were laid off or fired without cause. For legal assistance, it is strongly recommended that you retain the counsel of experienced employment law lawyers. Please get in touch with our law firm to schedule your free initial consultation with our legal team today.
What if You Were Not Offered a Severance Package Upon Termination?
Even though you may not have been offered severance pay or any severance package upon your termination, you may still be able to acquire such payment. One thing we recommend is that employees negotiate the terms of termination before being terminated.
Suppose you should have been entitled to certain benefits during your employment but you never received them. In that case, it is possible to negotiate for a severance package.
Employers may attempt to convince you that severance agreements are non-negotiable, but this is not the case. Before accepting any employment position, it is highly recommended that you have your employment contract reviewed by an experienced attorney familiar with Illinois employment law. However, if it is too late, skilled attorneys can still lend valuable legal assistance in helping you negotiate the severance deal you believe you deserve.
What is Severance Pay?
Severance pay is financial compensation that some employers offer employees at the end of their employment with the company. Some employers offer severance pay within severance packages, along with other benefits such as the continuation of employer-provided health insurance. Not all businesses have the same approach to severance pay, and whether you receive severance pay may depend upon what triggered your dismissal, your performance with the company, and work policies related to severance.
When negotiating for severance pay, consider the following talking points:
- Will the severance package include unpaid bonuses?
- Does the severance pay include paid time off, vacation time, and sick days?
- Can the severance pay be offered as a lump sum instead of installments?
- If paid in installments, how long will the severance be paid for?
- Will severance pay expire at the employee’s death, or will payments continue to be made to surviving family members?
Do You Get Severance Pay if You Were Fired in IL?
Employers offer severance pay to help employees gain some level of certainty. Essentially, those who agree to a severance package deny themselves the opportunity to later make a claim against the employer, citing wrongful termination, retaliation, or discrimination. Employers dramatically reduce the chances of liability or lawsuits by offering severance pay. However, severance pay is not guaranteed.
There is no rule regarding severance, but executives tend to receive severance pay equal to a month’s salary for every year worked. Non-executives may expect something closer to a week’s salary for every year with the business. Still, again, this cannot be guaranteed.
While severance pay is not guaranteed if you have been fired for cause, you may still attempt to negotiate for financial support regardless. It is strongly recommended that you seek the legal guidance of experienced employment law attorneys for assistance in negotiating better terms of severance pay. Contact our Lombard law office to schedule your free initial consultation with our attorneys today.
Is Severance Pay Negotiable?
When offered severance pay or any other severance package, some employees are grateful to receive anything. What you may fail to understand is that you still have the right to negotiate in hopes of recovering a larger settlement.
Again, remember that severance packages and pay are not required by law. Despite that, some employers make fair severance packages as part of their company policies and may also use them to attract future employees.
Some employers still offer severance to fired employees despite firing them for cause, such as misconduct, failure to follow company rules, or poor work performance. In such instances, work with experienced lawyers for assistance in negotiating a better deal.
Schedule a Free Consultation with Our Experienced Employment Law Attorneys Today
The employment lawyers of our Illinois law firm have extensive experience assisting clients in reviewing and negotiating for severance pay in complex employment law cases. Legal assistance can be invaluable in recovering a fair settlement from your previous employers.
For more information on severance packages, negotiating for better severance pay, and all other employment law matters, please get in touch with our law offices to schedule a free case evaluation with our legal team.
You can reach us at 630-394-6350.