Opinion ID: 1265184
Heading Depth: 2
Heading Rank: 4

Heading: severance pay/damages

Text: Finally, PYA contends that the Master erred in awarding King severance pay and in calculating King's damages. King testified that, when hired in 1983, he was advised of a severance plan of one week's salary per year of employment. Although the Manual contains such a severance pay policy, PYA issued an internal communication in 1985 rescinding that policy. However, there is no evidence that King received notice of the rescission. Therefore, under Fleming, PYA's rescission was ineffective as to King. The Master correctly awarded severance pay to King. PYA also asserts error in the Master's computation of damages. We agree with PYA that the Master, having found the 1989 Employment Agreement void, should not have computed the damages under that agreement. However, under our holding that the 1989 Employment Agreement was valid, the error is harmless. The damages are properly to be determined under the 1989 agreement. PYA's modification of the agreement, as discussed earlier, related only to the at-will employment status of King, and did not impact upon the commission formula set forth in that agreement. Accordingly, we hold King's damages were properly computed. AFFIRMED. FINNEY, TOAL, MOORE and WALLER, JJ., concur.