Quote:
Originally Posted by Unregistered
Hi, hope there are experienced HR pros can help me:
Recently due to reorg my bank retrenching my position. Under the policy 1 year = 1 month, I got 13 years service and should be entitled to a package of 13 months.
But when calculating the package my HR suddenly say I will not be entitle to full amount as the cap for retrenchment package is 300k. I dont remember got such thing and the HR girl clams it is new policy since early this year.
Is this legal in the first place? How can a bank just last minute change policy to cut cost just before they retrench?
Any HR pro can advise????
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Most (if not all) companies have ceilings (as well as floors) to the amount of severance paid out. In general, severance policies may allow for x months of base salary per year of service rendered, subject to a minimum of y months and a maximum of z months. Very standard.
In your case, it sounds like your company may have set a ceiling in terms of dollar value rather than months. It is not illegal to have such a policy, and it is not illegal to amend this from time to time.