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Plan document eligibility versus operational eligibility


Guest namk104
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Guest namk104

Employer sponsors formal severance plan as an employee welfare benefit plan. In the plan document, it clearly states that the ". . . plan does not provide severance pay to any terminated employee as a matter of right." Furthermore, the plan document states that ". . . whether or not severance pay, if any, is to be paid to a terminated employee is a matter soley within the discretion of the company." My question is as follows: If the plan is operated in a manner in which everyone who is terminated receives severance pay, does an employee who is singled out and not provided severance pay have a claim? Presumably based upon the notion that the plan is being operated in a manner other than the quoted provisions above??? If so, do you know of any court cases or other cites to back up the employees claim for severance pay? Thanks!

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