Can I collect severance and start a new job on Reddit?
Asked by: Isai Haag | Last update: November 27, 2025Score: 4.9/5 (53 votes)
some severance agreements have a clause that says the severance payments will stop if you find new employment during the severance period. but not all severance agreements have that clause, so it really depends.
Can I start a new job while getting severance pay?
Fortunately, separated employees generally should feel free to look for other jobs while they are being paid a severance, without fear of having to repay the severance or the payments stopping.
Does severance stop when you get another job?
You can indeed still accept severance even if you're about to accept another offer--in fact, even if you've already accepted another offer (assuming that there's nothing in your severance agreement that prohibits that, which there probably won't be).
Does severance pay stop if you find another job in Canada?
At common law it will depend on what has occurred. If you have settled the matter without any claw back provision, then it should not stop because you found another job. If the matter has not been settled and you begin working again then it will likely reduce the amount which a Judge will award you at Court.
What voids a severance agreement?
Fraud, misrepresentation, duress, or unconscionability are common defenses you can use if you want to void a severance agreement that you already signed.
Boss Said "Your Severance Pay Is $1!" Huge Mistake! All Patents Belong to Me!
What are the red flags in a severance agreement?
Severance agreements can provide crucial financial support for departing workers, but employers often have ulterior motives when offering them. Pressure to sign, inadequate pay or benefits, protections favoring the employer at your expense, and overly restrictive provisions are red flags in a severance agreement.
Can a company cancel your severance package?
Yes, your employer can change or even cancel your severance amount if you do not have a contract detailing how your severance package is calculated. If you do not have an agreement, you employer has full discretion to determine how much to offer, to change the offer, or to simply not offer a severance package.
Can you resign and still get severance?
Some employees receive compensation packages when they choose to leave a company to pursue opportunities. Severance packages may include a variety of types of compensation.
Can I get another job while laid off?
The federal Worker Adjustment and Retraining Notification Act (WARN Act) requires employers to provide 60 days' notice, during which all wages and benefits will continue to flow as usual, giving those who were laid off at least a little time to brace for unemployment, or get busy finding that new (better — knock wood) ...
What is a generous severance package?
The calculation behind the financial compensation offered in severance agreements varies from stingy to generous. Favorable severance agreements offer one month's worth of salary for every year of tenure with the company; while more frugal packages provide just one week's worth of salary for each year, experts said.
Can a company hire you back after severance?
Some employers might make you repay all or part of any money you received if you're rehired within a certain amount of time. Read the severance plan carefully for the details. At the very least, if your former employer offers to rehire you, ask whether you'll have to pay back your severance benefits.
Can you be fired with severance?
Generally speaking, employees who are fired are not offered a severance package—particularly when they are fired for misconduct. However, some fired employees are offered a severance package in the hope that they will “go away” after receiving the package.
Should you accept a severance package?
Consequently, you must thoroughly review the terms of any severance agreement and weigh the pros and cons of signing. For this reason, it's a good idea to talk to experienced employment lawyers before agreeing to the terms of any proposal for severance compensation or taking any severance payment.
How does severance pay work if you find another job?
Severance pay may or may not stop if you find another job, depending on the terms outlined in your severance agreement. Some agreements stipulate that severance payments cease upon securing new employment, while others may allow payments to continue regardless of your employment status.
What is the rule of 70 for severance?
5) What is the Rule of 70 for severance? In the United States, the "Rule of 70" for severance is a simple way to determine if an employee is eligible for retirement-related. If the sum of the employee's years of service and age is 70 or more, you can combine retirement benefits as severance pay.
What is prohibited in severance?
Separation agreements cannot include language barring you from pursuing legal action for past or potential injuries, including any bodily harm resulting from accidents, occupational hazards, or unsafe working conditions.
Are you eligible for rehire if laid off?
Yes. There are no laws prohibiting employers from rehiring laid-off employees.
Can I be fired for getting a second job?
Some employers may include clauses in their contracts that prohibit employees from taking on additional work without prior approval. In this case, if you violate your contract by taking on a second job, your employer may have grounds to terminate your employment.
Can a company find out if you were laid off?
It's possible that a job candidate's previous employers will reveal if he or she was fired from their previous job and the reason for the dismissal. However, in most cases, don't expect to receive this information.
Is it better to resign or get laid off?
Typically, employees who resign and end on good terms with an employer have a greater chance of receiving a positive reference from that former employer. On the other hand, when an individual has been terminated, their former employer might provide less than satisfactory remarks due to the circumstances.
Can an employer take back a severance offer?
While it is unusual for an employer to withdraw a severance offer, it is important to understand that the offer may be rescinded, even if it is covered by the OWBPA. Employers need to be cognizant of their rights in the event of bad behavior by the employee before the agreement is signed.
Can you sue for severance pay?
Take legal action if your employer fails to honor a severance agreement. File a lawsuit for breach of contract since severance agreements are legally binding. Consult an employment lawyer to assess your case and recover the promised severance pay.
Can you start a new job while on severance?
Ongoing severance pay could be conditioned upon you remaining an employee of the company – so if you start a new job, that start date at the new job becomes the end date at the old job. That also means severance pay would stop from that day forward.
What happens if I refuse a severance package?
Foregoing Severance Benefits: The most immediate consequence of not signing a severance agreement is the loss of severance benefits offered by your employer – including severance pay, continuation of health insurance and other benefits, outplacement services, and other forms of compensation outlined in the agreement.
Can you argue a severance package?
Although being let go from a job is a stressful experience, you might be able to negotiate the terms of your severance package to suit your needs while finding another employer.