Guest Iwonder Posted April 4, 2007 Posted April 4, 2007 I think the answer is "no", but I thought I would check with the experts out there. If an employee is terminated effective immediately, but his employer pays the employee for a month after his termination (ie: severance), does the month after the termination count towards the employee's service?
J Simmons Posted April 4, 2007 Posted April 4, 2007 I too think "no". There are no hours of SERVICE. The pay is not for work or availability for work. It's a severance type pay. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
masteff Posted April 4, 2007 Posted April 4, 2007 I'd agree too but add the caution to double check your plan text (definitions of service, employment, hours of service, earnings, etc). Just be sure it's truly severance and not paid leave of absence. The termination date you record in your HR/payroll system will be important. Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
J Simmons Posted April 4, 2007 Posted April 4, 2007 Masteff's comment about checking plan language is, of course, good. Masteff's comment about termination date recorded in your HR/payroll system also has implications for any group health coverage you may provide employees, and COBRA continuation notices etc. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
david rigby Posted April 4, 2007 Posted April 4, 2007 Several prior discussion threads on this topic. You may wish to try the Search feature. A keyword such as "severance" may help. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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