Are employees entitled to working notice and severance based on employers previous assurances?
The plaintiff had worked for Raytheon for 10 years as a software engineer. In September 2005, the plaintiff was provided with notice that her employment would be terminated on June 10, 2006. She was told that because the employer had calculated her notice entitlement at 9.4 months, she would, at the time her employment ended, be paid for one additional month if she signed a release. In May 2006, the plaintiff filed a claim for severance on the basis of assurances provided by the company (both orally and in writing) in January 2004, at a time when it was downsizing at the facility where the she worked. Specifically, anxious to placate the concerns of its key employees at a time of uncertainty, the company had told them that its practice of paying, at minimum, one month’s salary for each year of service would continue to apply to any employees who were laid off in the future (the “Severance Pay Policy”). Given these assurances, the plaintiff took the position that she was now entitled to
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