Quote:
Originally Posted by Mr.Coffee
this is a cost-saving strategy. I'm not defending it, saying it's right or that companies should do it, but some orgs, like my former one, believe that you don't need to pay out comp and let the people sue you. That's first of all, if they sue you, second of all, if they can afford it / want to, third of all, by the time the dust clears you earn all that juicy NPV until you actually have to payout future dollars. And fourth of all, usually it's a settlement vs. full award which reduces what you owe. It's not that he doesn't believe it's owed or think he won't eventually owe it, he's just being a snakey cheapskate loser. I'm not sure what the solution is other than fast tracking severance cases but the courts in most jurisdictions are pretty backed up following covid.
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Anecdotal but in Canada the courts typically award employees with what could be viewed as punitive damages if the employer doesn’t make a reasonable offer of severance. Legal proceedings is almost never cheaper than working out a reasonable settlement, though perhaps in the us it is different.