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Employee Not Entitled to Severance Pay When Contract Not Extended

In the case Johnston v. Med. Pharma Servs., Inc., 2021-Ohio-3419, the Fifth District Court of Appeals found that the trial court did not err in dismissing a former employee’s complaint regarding whether the employee was entitled to severance where the employee was not entitled to such pay under the employment contract.

Here, the employee claimed that they were entitled to severance pay under an employment agreement after the employee’s contract was not extended. The employer argued that the employee was not entitled to severance pay because the employee was not terminated and therefore was not entitled to such pay. The Court of Appeals agreed.

The Court of Appeals held that because the employee was not terminated, the provision allowing for severance pay upon termination was not triggered. The Court further reasoned that because the employee was not entitled to severance pay, the complaint failed to state a claim and the trial court was proper in dismissing the complaint.

To read this article, click here.

Authors: Matthew John Markling and the McGown & Markling Team.

Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always-changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.

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