Notice Requirements: Michigan law does not generally require employers to provide advance notice of termination to employees, unless specified in an employment contract or collective bargaining agreement.
It makes no difference how long you've been with a company so yes, it's legal to lay off any and everyone without severance. The exceptions: a union agreement requiring severance, a personal contract calling for a severance. This is usually only for executives and ``key'' people.
You are not required to accept the deal the employer initially offers. As with other types of contracts, the help of experienced counsel can influence the terms of the agreement. No federal law requires an employer to offer severance packages to laid-off employees under all circumstances.
Severance is never a requirement of any employer unless you have a signed employment agreement stating otherwise, or, it is a written policy of the company.
At-Will Employment. Michigan is an at-will employment state, which means that, in the absence of a contract providing to the contrary, either the employer or the employee can terminate the employment relationship for any reason that is not contrary to law. McNeil v. Charlevoix Cty., 772 N.W.