Just got laid off? Get better severance

Diane, I don’t think anyone voluntarily leaving a job (for whatever reason) is entitled to unemployment benefits, but I could be wrong: The rules vary widely from state to state, and in many states have changed recently due to the economic downturn. Your best bet would be to call the help line (800 number) on New Jersey’s unemployment-office web site and ask. Good luck!

Hi Annie, My company in NJ is offering a buyout to us and stating that if they don’t get the amount of people to take the offer there will be layoffs. If we take the offer to “save a job” would it also entitle us to unemployment benefits?

Mike, the rules about who is entitled to unemployment benefits (under what circumstances) are complicated and vary widely from state to state. Your best bet would be to consult with an experienced employment attorney there in Idaho — especially since your former employer has brought his own lawyer into the picture: You need to have equal expertise on your side! You can find an employment lawyer (or, labor lawyer) by going to http://www.lawyers.com and entering your zip code. I wish I could be more helpful, but I don’t want to practice law without a license! Best of luck to you! What your former employer did seems underhanded, but may be perfectly legal — you need an attorney to tell you.

Annie,

I worked for a medical company as a salaried rep for 1/2 years. The market is very competitive, so non-compete clauses are very common. In my non-compete contract my employer included that I must give 60 days formal notice prior to separating from the company for any reason. I thought that was a little out of line, so I had them include in the contract that if he is going to release me for any reason he must give me at least 30 days notice.

I recently decided to go back to school, which starts September 2nd, and wanted to leave my company July 31st. As a result, and to fulfill my contractual obligation, I gave notice on June 2nd both by phone and through a typed letter. On the evening of Tuesday, June 30th my employer called me and laid me off. At that time I requested a written letter addressing the fact he laid me off, and he bluntly refused to do so.

I believe that I am entitled to unemployment benefits as well as cobra, so I pursued both. I have only received one unemployment check, and just yesterday received a call from the Idaho Department of Labor. They are stating my former employer had his lawyer send the State of Idaho’s Department of Labor a letter stating that I resigned and that he felt I was not entitled to file for unemployment.

Am I entitled to unemployment benefits because he laid me off prior to my notice date? What do I do next? I am planning to go into the Department of Labor Dispute Department and submitting both a copy of my contract, as well as a copy of my resignation letter.

Thank You for your help!
-Mike

Linda, I know of no laws or rules that govern how long a company has to wait before hiring someone new for an “eliminated” job. I have seen companies fill “eliminated” jobs within 48 hours! It seems that “job elimination” is very often a code phrase that allows you to qualify for severance, unemployment, and other benefits; it does not necessarily mean your job no longer exists. Weird, huh?

Hi – I was laid off as part of a corporatewide layoff and told my position was eliminated. Now, it seems the company might be filling it. Is there a limit on how long a position can be “eliminated” before it’s filled?
Thanks

annie,

thanks very much for your advice.

Bobby, if I were him, I would not call the unemployment office, but rather wait to hear from them: Who knows if anyone actually “reported” him, or if that is some kind of bluff? If and when he does hear from unemployment that they have received a negative report concerning his eligibility for benefits, then he can present his side of the story — but until then, let sleeping dogs lie. I really have to emphasize, though, that I’m not a lawyer (and even if I were, I’m in New York, not Michigan: state laws regarding these matters vary widely). So let me just say again, if it gets to the point where he stands to lose a substantial amount of benefits, he really should speak with an attorney.

Hi Annie,

thanks for responding. My friend claims he did not get the letter till a couple days after the deadline. He can’t prove that it was delayed in the mail and thought that it should have came ‘registered or certified” to make sure he received it. He did call them immediately. They returned his call the following week and simply said they “reported” him to the unemployment office. They won’t return his calls. Other than a lawyer, do you think he should call unemployment? I would think the unemployment office would at least ask him for his feedback. Seems unfair!

Bobby, did he respond in time for the deadline? If not, he blew it. If he did respond in time, can he prove it? Otherwise it is just his word against the employer’s. His best bet would be to find a local attorney who specializes in these kinds of disputes — he can find one at http://www.lawyers.com; he should search under “labor attorneys” or “employment attorneys” by zip code — and tell the lawyer all the details, then see whether he has any rights or not. The initial consultation with the attorney might (or might not!) cost a couple of hundred dollars, but if it’s a matter of losing months of unemployment benefits (?), it would be well worth the investment.

Annie,
my friend has been unemployed for a couple months and receiving unemployment. Apparently the employer claims he will lose his benefits since he was sent a general letter to return to work and the employee did not respond in time to fill the job. What rights does an employee have to protect their benefits. He did respond to the employer by phone after receiving the letter but the employer insists they filled the job with another employee and since he was too late to respond, he is calling unemployment and reporting them. Does my friend have any rights.?

Steve, generally if you want to get severance pay, you have to sign the agreement. Why do you not want to sign it? Reason I ask is, I’m wondering if it has a non-compete clause…? Because that is a contentious area in the courts, lately…

Newspaper will be permanently ceasing
publication and its operations and the cessation of publication and resulting layoffs on July 23, 2009. So I will be laid off after 6 years of service and I need to know if it’s possible to me not sign severance.

Burleigh, even though the company didn’t state that you had to stay until August 3rd to receive the severance package, it’s safe to say that they assumed you would stick around until then. I bet they will try to get out of giving it to you (even though, as you point out, you were being forced to leave). The question of whether you are “entitled” to severance pay is a tricky one, because no law requires any company to pay severance to anybody (unless there is a union agreement or employment contract in effect that says otherwise). However, since you do have a severance deal *in writing*, it would be worth finding an employment lawyer near you — the laws governing these things vary from state to state — and showing him or her the letter. Depending on how it is worded, it may or may not constitute a contract. If it does, the company has to live up to it. You can locate an employment lawyer at http://www.lawyers.com. Good luck!

Annie,

2 months ago I was notified by my employer that I was being laid off and my last day would be August 3rd. A few weeks ago I was given an offer at a new company and took the job. Am I still entitled to my severance package since I was forced to leave the previous company? The letter they handed me at time of notification stated my final date, that I would be getting a week of severance per year I worked at the company and an specific amount of stock. Nothing was mentioned in the letter that I was required to be at the company by the final date to received the package.

David, if the manual doesn’t mention severance pay, that probably means there is none — or, no companywide standard policy on severance pay. (There is no law that says any employer has to offer a severance package. It’s entirely at the company’s discretion, unless you are covered by a union agreement or employment contract that says otherwise.) But you should get in touch with human resources and ASK! I would start by calling them on the phone, then send a letter (not an e-mail) to follow up. You might also talk to your former boss about it. He or she might be able to put in a good word for you. Good luck!

I been recently laid off after 6 years of service and need to know if it’s still possible for me to claim for severance pay after 2months have passed since being laid off.Employee handbook does not mention anything in regards to severance package etc. I have gotten a favorable reference letter from GM. If I go ahead and ask for severance pay, to whom should I address this issue to? and would it be wise to do it via U.S MAIL rather than e-mail? thanks for your understanding in regards.

Laura, the laws governing this type of issue vary from state to state. You need an employment attorney who specializes in discrimination cases — do you have one?

Anne
What happens if I have presented a claim to my employer for discrimination after they have made a severance offer? I have not yet accepted the offer, but it is about to expire and the employer is still reviewing my claim.

Annette, it sounds as if they are really pulling a fast one here! The company would no doubt argue that the *next* day (your one-year anniversary), you would have worked a full year. So they laid you off one day before that. Coincidence? I think not! Unfortunately, there is no law that says any employer has to pay severance to anyone, absent an employment contract or union agreement that says otherwise, so you have no legal recourse. But it might be worth asking your immediate boss to intercede on your behalf, in the interest of simple fairness. Have you tried that? Even if they still insist you aren’t eligible for what you would get if you had worked a full year (!), maybe you can embarrass them into giving you some lesser amount (which would be better than nothing).

My last day of work was the day before the anniversary of my first day of work. I didn’t receive any severance pay for that work. (I asked, but my former employer said no.) I thought I was going to receive severance, however, according to the severance policy, which didn’t say that severance was based on “anniversaries.” The written policy said that severance was based on “complete years worked,” and I completed a year, from beginning to end. Am I really ineligible for severance for that year of work? I worked a full day on my last day, and I received my layoff notice two hours before the end of the day.

Jenny, yes, unfortunately they can.

I was an hourly employee for more than 10 years as a supervisor. Recently, with management changes, they changed us to exempt, which ends up being a paycut. They made it effective at the beginning of a pay period, but didn’t tell us until a week later. Can they do this?

Melinda, they “took his 401(k) away”?! What the %$*#$*&^%*?! It would be worth his while to get a lawyer, because this all sounds way out of bounds. Go to http://www.lawyers.com (Martindale-Hubbell online attorney directory) right away and look up a labor lawyer — or employment lawyer, same thing — near you; you can search by zip code. A consultation might cost a couple of hundred bucks, but if it gets your father’s 401(k) back (!), it’s well worth the investment.

Anne,
My father was just laid off after working with the company for 23 years. He told me they owe him 8 weeks of vacation pay that they’re not going to pay him. Do they have to pay him? Also, 2 months before he was laid off they took his 401k away and made him start paying for his medical insurance which they were paying for him. Are they allowed to do these things or can be something be done. i just don’t see how they can get by with all this! Thank you for your time!

Julie, the only thing I can suggest is to get in touch with an organization of others with the same disability (assuming there is such a group — and there probably is: try Googling it), and ask whether they have information about this. You don’t say what the disability is, but there may be a chat room, blogs, etc., where people trade information, and you may be able to get an idea that way of what kind of severance others have received. Don’t forget to take into account that the amount may vary based on how long people worked for the company, how high up in the organization they were, and so on. Also, bear in mind that companies are not required to pay anyone ANY severance, unless the employee was covered by an employment contract or union agreement that says otherwise. So sometimes it is better not to look a gift horse in the mouth! Good luck!

Anne,
My husband was recently laid off. We know that other individuals in the past have received better severance packages due to a disability my husband has as well. Is there anywhere I can look to find information on what we might be able to ask for in addition?

I’m sorry, Elizabeth, I’m not familiar with L1 visas (only the more common H1B type). You would have to ask an immigration attorney. As for unemployment, the rules and residency requirements vary widely from one state to another, so ask the unemployment authorities in NY State; there’s an 800 number on their web site you can call. About getting a lawyer to write up a different contract: It won’t do any good if the employer won’t sign it. Bear in mind that there is no law that says an employer has to give anyone *any* severance pay. What that means in practical terms is that, if you antagonize them, you may end up with nothing. If you’re willing to take that chance, then hiring a lawyer — which most companies would consider to be antagonistic… — may be worth it.

Anne, if you get fired and you are on a L1 work visa can you get another job. Is it transferable? Also, can you file for unemployment if you have been working in the country for 8 months?
Also should I get a lawyer to write up a new contract to ask for more than 4 weeks pay. I have been with the company for 6 years.

Allen — Unfortunately, it is legal. If you refuse to move, you can be fired “for cause”, which would indeed disqualify you from severance and unemployment. And lots of companies ARE “getting out of paying by doing this”. When times get tough, the gloves come off.

Anne, my company is telling me if I don’t take the job their offering me over 150 miles away, I won’t recieve severance or unemployment. They know I can’t/won’t move. Is this a legal tactic not to pay employees unemployment? I’m not the first person they’ve done this to.
This sound illegal. Every company could get out of paying by doing this.

Ann, your lawyer is far better qualified to advise you than I am, but you should also speak with a tax advisor: If the company doesn’t pay you — and it really sounds as if they don’t intend to, or just can’t — you may be able to write those unreimbursed business expenses off your taxes as bad debt. Small consolation, but better than nothing?!

Due to cut backs I was laid off 2 weeks ago. No severance, no vacation AND my former employer owes me thousands of dollars in business expenses. They keep telling me they will reimburse me but won’t commit to a specific date. My lawyer says the company has a legal obligation to pay me but the company just said go ahead and sue! What should I do?

Ciara, this sounds fishy to me too. The rules for unemployment eligibility vary from state to state, so your best bet is to call the “help line” (an 800 number you can find on their web site) at the Texas unemployment office and run this by them. And yes, there usually is a time limit for unemployment filings, so don’t delay!!!

I am very concerned for my father. He has worked for a company for 23 years and they laid him off! They gave him all these packets to read (which I read) which indicate that in order to get his severance pay, he cannot list that he was “laid off” and that it was to the companies discretion as to what “cause” of termination was! Can this keep him from getting unemployment? It sounds fishy and illegal….what do you think? Also is there a time limit as to filling for unemployment…please help.

Jake, when you ask if you have a case, do you mean a legal case? Unless you can prove you were denied severance because of your age, race, or religion — no. However, it would certainly be worth going back to your old company and asking some higher-up who liked you to champion your cause and try to get severance for you. Good luck!

as our company downsized i was fired because i didn’t think it was fair to be promoted and asked to handle two full time jobs without receiving any additional compensation. Working in hr for our company i knew that we gave severance to practically every termed employee. I ran in to some others at a job fair the other day who were also fired bc of downsizing in the company and they too received severance pay. I know employers dont have to offer it, but do i have a case being the only one to not receive any severance?? (they approved my unemployment, but disqualify “me” from severance?)

Mrs. F. — Probably not! This is a really weird situation. Did your former employer offer you COBRA coverage?

I was terminated from my position on 12/1/2008. In my termination letter, it states that my benefits would continue through 12/31/2008. During the middle of December, I went to set up medical appointments and was told at that time that my insurance had been terminated on 12/1/2008. I called my former employer, who admitted that it had been a mistake, they thought I had opted out of the benefits, even though I had never signed anything saying that. They told me that they would have them reinstated. A few days later, I verified that insurance coverage was in place and went ahead with my son and husband’s Dr’s appointments. Everything was fine. But today, I got a letter in the mail denying one of my claims on the grounds that my coverage was canceled on 12/1/2008. It seems that my former employer communicated to the insurance companies to reinstate my policy through the end of December, but have recently decided that they would go back and cancel the coverage effective 12/1/2008. The insurance company is contacting my former employer and I have also sent them an email (so that I have record of that). Is there anything else that I can do?

Hi, Patty — I hate to say it, but there is no such thing as a “right” to severance pay: No law requires any employer to pay any severance to anybody (unless the person is covered by an employment contract or a collective bargaining agreement that explicitly says otherwise). Severance is entirely at the employer’s discretion. Your husband might try to bargain for more, given that, as an employee of the acquired company, he should be covered by that company’s (former) rules. But the answer he’s likely to get is, “That was then, this is now.”

My husband’s company was recently acquired and he just got laid off from a high level position (with the rest of the upper management), due to “redundancies” in positions. He worked for the original company for over 7 years and had an impeccable record. The “new” company only gave him 2 weeks severance. When the “old” company let anyone go, they received up to six months severance. Does my husband have a right to more severance pay?

Hi, Janet — The rules about these situations vary widely from one state to another. You should ask someone at the unemployment office in Rhode Island what would happen under these different circumstances (if you take a buyout, if the firm goes under…) Good luck!

IF I apply for unemployment and tell the state that I will be getting weekly severence pay I will be able to collect unemployment benefits when the severence runs out but What happens if the company folds and cannot continue to pay my severence. If the severence pay is instead a buyout(there is no work for me), will that affect my ability to collect unemployment. I was laid off due to lack of work, even tho I was a partner in the business.

Emma, if you refuse an assignment, you could be let go “for cause”, meaning you probably wouldn’t be eligible for the same severance someone would get in an involuntary layoff. In fact, you probably wouldn’t get any severance at all. As for unemployment benefits, the rules vary from state to state, but if you were fired for cause, you might still qualify for unemployment. But your employer has really got you between a rock and hard place. The people in charge must be betting that, in this terrible job market, no one will take the risk of saying “no” to this onerous assignment.

My employer is comprised of both union and non-union workers. The union workers may go on strike later this year. My employer is gearing up for this possibility by training us non-union workers to temporarily perform the union jobs until the strike ends. My employer will require me to work on the east coast, 6 days per week, 12 hours per day. If I do this, I will be away from my family, unable to help my son with his homework, etc., which is very troubling to me, not to mention the other aspects – that I don’t care to live out of a hotel away from my family working 72 hours per week. If I refuse to do this work, will I qualify for severance and unemployment benefits? My company does have a severance policy in place for when it does layoffs, but I’m not sure whether this would be considered a layoff or not if I were to refuse this assignment.

It certainly would be good to have something in writing, Alisha, and no harm in asking — as long as you don’t make it sound as if you don’t trust your employer to honor the agreement! One way to frame this would be to say that, since June is so far in the future, you’d appreciate having the agreement in writing just so you don’t forget any of the details between now and then.

After six years, I have been notified I am being laid off in June. I was told verbally that I will receive severance pay with Cobra for 9 months starting June. Should I be asking for something in writing?

Lisa, any employer with more than 50 employees has to offer you what’s called COBRA insurance coverage, which means you can continue on the company health insurance plan for 18 months, but you have to pay the premiums yourself. As for qualifying for severance pay, there is no law that says any employer has to give anybody any severance pay — that is strictly the employer’s choice. I wonder why they didn’t extend COBRA coverage to you, though. (Federal law says they MUST.) Is it a company with fewer than 50 employees, maybe?

I was just laid off after 4 years. I had just returned from family medical leave and was told this morning I am being laid off. I called this afternoon to ask questions about my FSA and insurance and was told they have already canceled my insurance. Can they do this without any prior notice? i would at least like to have insurance for 2 weeks so i can get my medications filled. (I get 3 months supply at a time.) Also, do hourly people qualify for severance pay?

Trish — No, I don’t think it sounds like a setup. Most people would probably rather work mornings than evenings, so the idea is probably to accommodate you by having you switch with someone who is currently working evenings. Why not fill out the form and see what happens? At least you’re being offered a job, which is pretty rare these days!

Yes, I’m an associate at Macys. Some managers are laid off as well as supervisors. I’m offered another position that doesn’t accommodate my schedule I work in the evenings but this form is only offering mornings. I was told to write in what I can work and I can be accommodated. What do you think? Does it sound like a setup?

Deeman, if you refuse to go train your replacement, the company can indeed fire you for cause (which would mean, yes, they could also dispute your right to collect unemployment). This is a lousy situation — personally I don’t think anybody should ever be obliged to train their own replacement (unless they’re leaving voluntarily), much less travel to do it… — but I think you’d be smart to bite the bullet and just do it. For one thing, you do want to be able to file for unemployment with no hassles; and for another, you may need a reference or recommendation from someone at this company when you start job hunting, so the wise course is to grit your teeth and stay on their good side. Readers, what do you think? Comments, anybody?

I just recently found out that the company I work for is closing our facility and moving to another state. We have all been told our release dates and will be getting a retention bonus as long as we stay until that date. My only problem is that they want me to go to that state and train my replacement. My job has never entailed travel and I am also not feeling to keen about training my replacement. Can they force me to travel to another state and train my replacement? Or if I refuse can they fire me and dispute my unemployment?

Pat, if that’s true, it would be a violation of the federal Americans with Disabilities Act (which prohibits employers from firing people because of a medical condition), but the trouble is, it’s usually extremely hard to prove that was the reason. Unless you have a “smoking gun” — for instance, a memo or e-mail that states or suggests you’re being let go because of your illness — the employer can always give some other (legal!) reason.

I am being laid off by my company because our contract with a client was reduced, so 75% of the people working on the client’s account are being let go. I am now trying to stay with the company but on another account. Until that happens my employer is letting me continue with the work I was doing before the layoff. But, I was told that even though they did not need me and they are eliminating my position, I need to train someone else in my group to do my work. Is this fair? If they don’t need me, why should I train my replacement. My work evaluations have always been at the top rate, and they are telling me it is not a performance issue. Although, last year, I was diagnosed with cancer and went through extensive chemo and radiation treatments (I worked through both and did not miss time), but I feel this is an underlying reason for my termination.

X, I’m not a lawyer, but I think you should speak with one. I don’t often recommend that — most layoffs are perfectly legal, alas… — but this is an unusual set of circumstances. There is a principle in employment law that allows people to sue if they have relied upon the word of an employer to their own (that is, the employee’s own) detriment, and that may apply here. You need to lay out all the facts of the situation to an experienced employment attorney. The best way to find one near you is to search Martindale-Hubbell’s web site, http://www.lawyers.com. One thing to keep in mind: The person(s) making the decision to let you go because you haven’t been traveling abroad probably knows that it’s ridiculous. In cases like that, sometimes all it takes is a stern letter on a law firm’s letterhead — not necessarily to get you your job back, but to inspire some other sort of settlement, like a nice fat severance package that would allow you more time for your job hunt. Good luck! Will you let me know how this turns out?

I was hired by company X in mid July 2008. I work in US on a H1-b visa. I have a Masters in Science in engineering. I was hired due to a strong fit in the job and superb technical credentials.

The job requires a lot of international travel and not being US citizen, I need to secure visas for various countries in advance of travel. The job entails haphazard and unplanned international travel. X knew this situation at the time of hiring me and while transferring my H1-b visa from my previous employer, they assured me that they deal with a lot of visa issues and my H1b status (not being a US citizen) is not a problem.

Between July 2008 and November 2008, I successfully completed a lot of domestic travel. However, could not do so with international travel as I required visas to travel outside and this takes some finite time.

I offered to help by getting the visas taken care of myself. As an example- I can, in reality, secure a Canadian visa in 1 business day. However the company mentioned that they will not allow me to do this as they have to follow their internal procedure and go through a visa consulting firm. For 2 months, they kept working on a Canadian visa.

Towards the end of November, 2008 I was told that my employment with X is being terminated as I am not able to travel abroad!! They also clarified that as far as my technical abilities and/ or my work performance and/ or work ethic; they have absolutely no problem and are in fact happy with my performance.

Although I have been given some time to search for a job as opposed to immediate termination (till Feb end 2009)-i.e. I am still going to office etc. due to the economy, it is getting hard to find a new job.

I had multiple good offers in July 2008 when I was hired by X. Only because the assured me that there would be no trouble did I choose them over other employers. Their wrongful hiring has led to a destruction of my career (especially as they terminated my job at a time when the economy has hit its worst).

I wish to know if there can be a legal case against the employer (X) in this case?

Well, it’s certainly legal. Whether it’s ethical or not depends on how much of a misrepresentation it is. If your resume says, for instance, that your dates with that company are “2001 to present” when in fact you aren’t employed there anymore…hmmm…I think you can reasonably only keep saying that for a short time — until your severance runs out? or before that, if you have a long-term severance payout… — and then change it to “2001 to January 2009″. In other words, you should let prospective employers know that you’re not, in fact, employed right now. Being allowed to use a former employer’s resources (voicemail. e-mail, even physical office space) while job-hunting is such a common feature of corporate outplacement packages, no one is likely to ask about it — but if they do, you can turn it into a positive by saying that you are leaving the company on good terms and have always had excellent working relationships with the people there, so they’re allowing you to do this. Reflects well on you!

Annie, a couple posters mentioned their company allowing them to keep their voice mail, e-mail, etc. active while they job search, so it looks like they are still employed. My company is willing to do the same thing; is it ethical/legal to keep the company on your resume if the company agrees to it?

Suzie, this varies from one plan to another. You need to speak with the insurance company. But November was a few months ago, anyway — are you hoping for a refund?

At the end of October my husband was laid off and was told he could pay an upfront premium to continue health insurance through November. Is it true that health insurance is paid one month ahead? If so, shouldn’t the amount we paid in October cover us through November?

Mine too, Joanna!

I agree 100% with the author’s findings and comments. I am an introvert and the article spoke volumes to me. I feel more encouraged as it is not “too bad” after all to have this personality! Although it is easier for the extroverts to get a job and also move up in a company much faster.That has been my professional experience.

Harrisburg — Wow, that was an incredibly stupid thing to say. You’d have to ask an attorney whether a sex-bias case could be built on it. (I bet they’ve been built on less.)

My wife was laid off and in a staff meeting that day it was stated by those that laid her off to other employees that she was laid off because she has a husband who has a good job, that it made it a better decision. Isn’t that sex discrimination? (And, why would they say that, other than the obvious that they had her train someone else who was paid less in the last three months?)

Sherry — No, there is no law that says an employer has to provide a severance package, likewise no law saying the company has to pay you for unused vacation. Sorry! I wish there were such laws, but no …

My boyfriend was just told that he will be laid off as of Friday February 13, 2009. Is it the law that you are provided with a severence package? As well as paid for your vacation time?

Patty — No. It’s lousy, but it’s not illegal. The dominant principle of employment law in the U.S. is “employment at will”, meaning that people can be dismissed for any reason at all, at the employer’s discretion — unless the dismissal is a clear violation of public policy, i.e., age discrimination, sex discrimination, etc., or unless the employee is covered by a union contract or other employment contract that specifies how and/or why the person can be let go. It sounds as if your friend was treated badly, but her employer is entitled by law to replace her.

My friend was laid off, due to the poor economy, and told that her tasks would be assigned to someone else who worked for the company. However, no more than 1 day later a replacement, for my friend, was introduced at a company meeting. Does this constitute an “illegal dismissal”?

Jon, I don’t think it works that way; you are eligible to receive benefits as soon as you become unemployed, and any delay in receiving the money is probably just due to some bureaucratic holdup. The fact that they are doing an investigation may well be slowing things down. But most states (including Minnesota) have web sites and 800-number help lines where you can try to get answers to questions (like, when will I get a check?) — have you tried those?

I was recently laid off.I applied for unemployment a couple days later and was accepted to receive benefits.I was behind on my mortgage 3 months at layoff time, and decided to take a lump some out of my 401k for $9000.I contacted unemployment office and they said they need to do an investigation.I’ve not received a payment yet.Do you think it will be a couple months? Do you know if they take that balance and figure in how long it would take you to make that $, and then your payments are delayed that long?

Paul — You would have to speak with Kaiser about that. Different insurers have different rules.

Sherry, you have 2 options here: 1) If the amount he owes you is $1,000 or less, you can take him to small claims court, for which you do not need a lawyer. Contact your local county clerk’s office for information, or look online for how to file locally. 2) No matter what the amount, if these were legitimate business expenses, you may be able to deduct part of the costs from your taxes. It might be worth your while to get advice on this from a professional tax preparer (your accountant if you have one, or one of the big tax-prep chains if not) so that you get the refund you deserve.

I was laid off from a company I was with over a ten year period. Not only did he not pay any severance, he has refused to reimburse me for my travel expenses for two industry shows that he had sent me to. He had always been good about paying me over the years for those shows, but now feels that he should not have to pay. I do not have the money to hire a lawyer and can not find an agency to help. Any suggestions?

Hello, my wife will be laid off soon at her job. Our family is currently on her health insurance plan (Kaiser). If we want to continue coverage and pay for it out of our own pocket (not COBRA) do we need to “re-apply” with Kaiser, or are they obligated to continue coverage?

Ana — They have to take payroll taxes out (just as you have to pay income tax on the money) because it is income to you. So, unless you are owed a tax refund for the year, no, you won’t see any of it back. Dave, are you still insured during the two-month layoff? I bet you are. If so, then naturally you have to pay the premium whether you’re working or not.

I am getting laid off for two months and my employer is forcing me to pay the two months worth of insurance just like I was working,can they do this??

what about the tax ramification of severance pay i rec’d 90 weeks of pay. for 31 years of service with AT&T.they took about 33% of it in taxes…Will I ever see any of it back????

Todd, after 11 years, I agree that you’re entitled to ask for the vacation time you had accumulated! So go ahead. The only thing is, a company that says it is paying you the wages you’ve earned “as a courtesy” seems to have a pretty limited idea of what you’re owed, so don’t be surprised if they turn you down.

I got laid off in jan 19 2009,after 11 years of service at a produce company in minnesota,along with 2 other employees,8 years and 9 years.We all received the same letter saying they were eliminating 3 positions due to economy etc.They stated “as a coutesy we will pay you your last paycheck up to the days work”.I had accumulated almost 4 weeks of vacation on jan 1.On my last paystub it says, “available vacation time 144 hours”.They wont pay it.My question is,should I continue to go after what I beleive is what’s owed to me? I really don’t want to just let this go.

Christine — No, you don’t have a legal right to vacation time (or severance pay), but if you are the only one who really knows how to use the database, you’re in an excellent position to negotiate. Why not offer to train someone in exchange for those vacation days — and maybe even 6 weeks’ severance (2 weeks per year of service)? What have you got to lose?

Hi Annie. Okay, I was told last week that I had to let go of my one employee- that the economy was the driving force. She was to be done on 2/3/09. On 2/2/9 I was notified that I too would be done on 2/3/09. I asked about severance- I’m getting nothing (3 years with the company). I asked about my vaca time (7.5 days) I’m getting nothing. Received an email stating that I was treated “fairly”. They have the BALLS to ask me for help with the new database, mind you I’m the only one in the company that has a good working knowlege of the system- to “train” someone. My question is, don’t I have a legal rite to my vaca time?

Hmmm… Two weeks?! A little on the optimistic side, Daba, as you know — and as they’d know if they were the ones job hunting right now…!

Back in October, I was laid off my job (was there for exactly 2 years) and severance was NON-NEGOTIABLE. My round of cuts included another 9 people from this small company tech company and HR told us all it had nothing to do with performance and everything to do with the economy. I received 2 WEEKS of severance. Healthcare benefits also ended in 2 weeks, so the first thing I had to do after hearing the bad news was to contact my doctors and try to make appointments.

HR told me that I should be “happy” because I had my accrued vacation time, and I should be able to find a job in 2 weeks…. Really?

It’s Feb and I’m still looking!

Fortunate indeed! Congratulations, Mike!

Josh: Yes, it is. By law, they don’t have to pay you anything at all, actually.
And Dan: I understand your frustration, but what you seem to be contemplating — that is, telling your employer, “Let me keep my job or I’ll spill the beans to customers” — sounds an awful lot like extortion. It’s true that almost everything is fair game in negotiations, but there are limits. If you start making threats, I doubt it will work in your favor. Readers? Comments?

This past Nov. I was laid off after 2.5 years on the job. I was one of the lucky ones.
I was able to keep working through the end of Dec. and in addition to my transition duties I was able to take time off for interviews with no penalty.

I also received all my vacation as a payout along with 2 months severance and 2 months continuation of my benefits.

Since I knew layoffs were coming about 2 weeks before they did, I started my job hunt early just in case I was hit.

When I left I had been on several interviews already with and had a good feeling about 1 job.

I started that job a few weeks ago and count myself as very fortunate.

Hi,
I was just let go from a company that I had worked for 10+ years. The reason was a “RIF” (Reduction in force). Basically, my job is getting outcourced. Anyways, the company has been going through these mass lay offs for about 2 years now and theor severage pacages have been getting worst. What I got now is 1 week pay for every year I was employed. But, really, they are paying me what unemployment wont. They will pay my full salary for 10 weeks. Then after that, I’m done. But the screwed up thing is that I have almost 600 hours of sick time built up, and still have about 2 weeks of vacation. I live aound Pittsburgh PA, and they told me that they dont have to pay me my vacation left over. Is this true?

Sorry, I was made aware on 1/27. I have a job for a few more weeks.

Great article and advice! As a career consultant, I would like to add one more item to request, from the employer, in the severance agreement:

Outplacement Support!

Annie, I was told my job is being eliminated on Jan 27. The company is trying to find me another position within the company. That would be great. However, the closest plant that is interested is about 1.5 hour commute in good traffic. Anyway, it doesn’t look like I have the background for the position anyway. When negotiating for severance is everything and anything fair game. Say I know things that the company has done that their customers will go ballistic over if they find out. Is that fair to use if the negotiations do not go the way I would like?

The IT job market looks the same after 9/11. The market has been flooded with IT employees in the Dallas area. It is definitely a companies market to pick and choose employees at cheap rates/salaries.

I know my phone is not ringing like it was in 2006 or 2007. I contacted a few co-workers at some of my old jobs and they are losing their jobs. One example is EDS. They are laying off 25K employees. — Keep your heads up.

I was told on January 8th of 2008 that my job was being eliminated at the end of February 2008 and was given a 4 month severance package. I was extremely fortunate to have been offered and started a new job in July of 2008 and am very grateful for the great opportunity, especially realizing it was the beginning of very trying times. Meanwhile my wife was laid off in the beginning of May of 2008 and to date still not working.
Part of my compensation plan was the payout of shares that I was awarded at the end of 2007 because of my excellent performance during the year. When I tried to collect my shares I was told I was not eligible because they had not yet vested, the vesting period was 2 years. I was not aware of the strict constraints surrounding the award and never thought to question them as I was proud to be awarded such a prestigious bonus in the company. This award was given to me in late December 2007 and then my position was eliminated in early January 2008. How could the company give me an award at the end of December, knowing that my job was in question (jobs do not get eliminated that quickly) and take it away the beginning of January especially knowing the details surrounding the bonus unless they knew all along that I would not be paid out for the award. If they knew my position was being eliminated why was I given the award? Why am I to be penalized because my position was eliminated? Any suggestions?

Annie,

My son was paid unemployement for 10 weeks about 1 1/2 years ago and then the state of MI said he had to pay it back. He owes $3K and got laid off today. Do you know if they will pay him partial benifits or keep the benefits until the $3K is paid off?

Steve, you should speak with the HR or benefits person at the company about this. If they don’t offer the option of taking your severance pay as a salary continuation instead of a lump sum, consider buying an annuity with the lump sum, so that you have income spread out over time. Consult with a reputable accountant about the tax consequences. It will cost you a few dollars but could save you thousands.

If you’ve been laid off, what kind of severance did you get?

3 months Salary, all Vacation/Sick Time. Health Insurance paid for 8 weeks.

Did you feel it was fair?
Yes.

Did you try to negotiate the terms?
No.

Any suggestions?

Take a deep breath, clear your mind, then make an action plan to get another job.

Don’t Panic! (nod, Scott Adams) Being stressed out can turn off an interviewer. It also shows that you can handle pressure if youre clam, and clear thinking even though you could lose your house.

Don’t Trash Talk the company that laid you off to potential employers.

Red Beans and Rice. No going out, no unnecessary purchases, eat what is in your pantry and freezer instead of going grocery shopping.

But, most of all, dont panic, calm down, put your head down and drive forward. You’ll make it.

Our small “Internet Company” profited 30 million in 2005. Even made #2 on “Best Places to Work” list in 2004 in a city that has some impressive international corporations based there.

It was bought up by “Big Corporate” in 2005.

11/2008 – CEO Comes to town and talks to us saying “our business is not going to be affected ‘much’ by a downturn in the economy. Your jobs are safe.”

1 Week Later, Company downsized 62 out of around 300 jobs, while we were still extremely profitable (on track to profit 27 mil)

Majority of the people let go? Customer Service.

Now their Customer Service numbers tanked, they have some of the worst numbers I’ve ever seen associated with the profession, and people are leaving en masse because they “don’t trust the company anymore”. They even asked if I would like to return, and I turned them down.

One decision like this can crush a company. Employees lose faith, start not caring about the customers, dont trust the Management, and start looking for jobs. Meanwhile, the Customers are suffering. Once they start suffering, they start leaving also. Domino effect.

My severance package entails payout as a lump sum similar to a supplemental income or bonus taxation. I prefer to have a salary continuation instead of a lumpsum payout. How do I go about it? With lump sum payout, I will be taxed or giving more to Uncle Sam instead of a regular salary continuation.

My old boss told me that one day I would look back on being laid off and see it was for the best.

I told him I hope someone says that to him real soon.

I should have asked him if he was advocating recreational oral surgery, too.

Sometimes this is a blessing I have seen it and read about it time after time were someone gets fired and it was the best thing that ever happened to them don’t get depressed fight it,it will work out!www.seeksomething.com

I work for a major magazine that was sold a few years back and the new owners put in the usual gang of idiots to run the place and now we’ve been told that we’re going quarterly; surely a death-knell if I ever heard one.

I’ve got lots to worry about.

Isn’t trying to negotiate a severance after termination like trying to beg for mercy after you’ve been shot?

I just got laid off and received what at first looks like a very generous severance package for someone who was there for only three months. However, finding a new job is not an easy task. Had I not been recruited by Home Depot for three months, I would still be at my old job, still have a paycheck, and still not have a worry in the world about finding any type of job.

I worked 24/7 at my former employer and felt shackled to the job. It was a wonder that I stayed on for ten years.

Then, when they decided to cut staff, I couldn’t lasso my boss and get him to tell me the truth as to why I was chosen.

Fortunately the gods must have smiled upon me because I got a new job quite quickly and banked the severance I got.

Yeah, you’re right. Special circumstances can get management to up the severance. My company got in new management a few years ago and to say that they’re in my league would be a stretch.

When profits dropped this year they naturally decided to let us old-timers go.

I got a better severance package with medical benefits continued because I told them my wife has serious pychological problems that requires constant medication.

Speak up for your rights and you’ll see how flexible management can be.

I signed no such agreement on my departure. The client company was Citigroup. We were engaged in business process and system reengineering to improve efficiency and thereby profitability. Then one Tuesday the feds handed Citi a bailout check for 25 billion. On Thursday, Citi told me to pack my stuff. After all, why waste money improving the business when the government is giving money away for free?

I’m just wondering how I and other taxpayers are going to pay for that bailout without a job? Citi could have used our tax dollars it to keep me employed and invest in its business processes and future viability. But gosh, there was that shiny French airplane. What is plain to see is that to CitiGroup management, your tax money in their pocket means happy days are here again.

As this very good article states, all severance packages are negotiable. Most people are too traumatized by the news of the layoff, they will accept anything. If you have special circumstances (i.e age, health issues, etc), you could very well negotiate a better package. This is because even though the company can afford much better lawyers than you, the public embarrassment of a trial and the damage that can be done to the goodwill of the company in local and national media can be significant. But, this can be a risky strategy if you don’t have special circumstances.

Our boss was told that if she can’t out-source everyone possible she’d be replaced with someone who would. Then they sent her for two weeks to India to check out an out-sourcing company.

The handwriting’s on the wall for us.

I was notified December 4th that my job was eliminated, standard package was 60 days then 4 weeks and 1 week per year. Pay and health benefits was to go through August. On January 14th Nortel declared bankruptcy and I called and discovered severance was cancelled and last paycheck was that Friday. More layoffs coming and everyone there will get virtually no notice. Ouch.

I was laid off from a sales position at a tech/web dev company in NYC in 2001 — the SAME day I got the OK from a client on a big multi-million dollar deal, the largest in the firm’s history. Of course, the engagement contract wasn’t signed yet.

My company would not pay me my salary due, the 2-weeks severance they were offering, commission that would be due OR my expenses until I signed a document saying I would not sue them. What could I do? I was desperate for the money.

They then proceeded to cut the multi-million dollar deal into small pieces, starting with a small ’scoping’ phase, and wrote a contract only for that portion. So instead of getting commission on the multi-million dollar deal I spent 9 months closing, I got commission on $50K.

Karma finally got them. The client got fed up with their shady dealing and fired them, taking the scoping document and hiring another firm to build the project.

Yes, I was laid off and my severance package was more than fair since I was only with the company 18 months. My job was reposted with a different title and I’m sure a different salary range.

Sounds like shadowy business practices to me.

Jane, it sounds as if this is not a layoff situation at all, but rather a case of your husband’s boss just trying to edge him out. In a company with 40,000 employees, can he find somewhere else in the company to move to? Otherwise his only recourse is to refuse to resign (even if pressured to do so), so that if he does get fired, he can still collect unemployment benefits.

>Not sure why people are keeping these company names such a secret<

Those who get severance are typically asked to sign agreements vowing to not disparage the former employer and not tell anyone severance was paid or that an agreement even exists.

Annie: My husband’s company has had a few layoffs, although more could certainly be coming with a company of 40,000 employees. My husband’s boss is trying to save his friend’s back by putting him in my husband’s position. To do so, he’s coming up with performance excuses like my husband “doesn’t have a detailed enough sales plan.” Keep in mind that he’s been doing this 10 years, he’s not a newbie. In answer to your question, no widespread sales layoffs yet. Thx.

Annie: His company has about 40,000 employees. They’ve had minor layoffs, but more could certainly be coming. His boss is making excuses to get rid of him (such as “he doesn’t have a detailed enough sales plan”). His boss is trying to save his friend’s back by putting him in my husband’s position. In answer to your question, no widespread sales department layoffs.

Annie. Thanks for allowing ALL of us to have an outlet to share how we are affected and to learn some positive ways to keep focused on positive outcomes! My position was eliminated for what I was told was a restructure and down-size. Although the position of the company I worked for was showing an increase in financial stability in measurable efforts. I was invited by email to “make myself available for a meeting” by the Interim Executive Director. When the HR manager joined the meeting, I suspected the news would not be good! I was given no severance and told that a witness would observe my removal of personal possessions. I was asked to leave the propety immediately. I was given nothing in writing, no offer of severance, no letter of recommendation. At this time the company is advertising vacant positions of which I felt qualified for upon my departure. And although not considered, I believe that the steps toward my next position, have taught me that fairness is not always the focus of the MBA’s. I learned that a colleague had been terminated just prior to my meeting, for performance reasons. Days following the elimination of my position, the local media ran articles announcing the permanent appointment of the former interim director, and the pleasure of the board for his compassion. So what next…I have since then “dusted myself off” and look forward to gaining employment soon. And hopefully with a person-focused company. I am relieved that I did not invest my career in this type of organization. I have taken the time to volunteer for my community, network with other civic groups, be of sincere service to my working spouse, and help more around the home and thus far, God has provided beyond not only my need, but the need of my family. I have witnessed first hand that others who are dealing with the circumstances of employment need our prayers and support. I realize that the term “at-will” affects my circumstances. I only wished that I had been more willing to “be at my own will first.” Good luck readers! Take necessary steps to exercise better judgement the next time. Hope awaits you. Dont wait around dwelling on what happened. Take measures in your search to make sure it doesnt happen again!

my girlfriend worked for a construction company as an accountant, she had the owner to watch the construction market in December of 2007, he didn’t listen, when it all came apart, the owner asked her to work in the field as well as in the office. Payroll became later and later, by September they still owed her four paychecks, I forced her to find another job and I reported the company to the Register of contractors as I pretty much had an inside picture in the way it was managed. She found another job, but we still get calls from her previous co-workers trying to see how we handled it.

Not sure why people are keeping these company names such a secret. I, along with at LEAST 16K others at IBM, just got laid off. They had an amazing quarter and how do they re-pay us? That’s right..sending us packing. Severance is “OK”. From what I’m reading, it’s pretty fair. But IBM has a few different severances..mine is 1wk/year of service. I also have the option to decline the severance pkge and go through a 1 month performance evaluation period. If you’ve worked at IBM for 5 years or less, it’s a toss up as to whether you should take the package or get paid for another month through this evaluation time…

The details of my experience are quite similar to the other posting regarding the Indian-based consulting firm. It may be the same firm. It’s been called “India’s Enron”. A layoff was expected due to the client opportunities drying up. My layoff consisted of a phone call thanking me for my excellent work and asking that I write them a letter of resignation. Hello? I heard from other employees that this is a common practice. This of course, would free them from any obligation to pay unemployment benefits. I politely refused and requested instead that they send me a layoff notice, which they eventually did. Still, they falsely reported to the state that I had resigned with no reason given. The state authorities reviewed the facts and determined that it was indeed a layoff. Duh! Like I’m going to resign in these times for no reason? Are you nuts? They still owe me thousands in business-related travel expenses.

Interestingly, the client cut us loose two days after receiving 25 billion in Federal TARP bailout money. Makes sense; After all, who needs improved IT systems to help increase profitability when there is free federal money? What could be more efficient than that?

Yes… try to keep your old phone number and voice mail alive especially if the number’s in a prestigious area such as NYC or Chicago, etc.

Yea… ask for a letter of recommendation from the boss. Unfortunately experience showed me that my boss wouldn’t sign anything even if you put a gun to her head.

I was let go from one of the big Indian based IT outsourcing firms. Here is how the process went;
I was called on the phone at 9:45 a.m. by a HR rep I have never met and tolsd to be on a call at 11 a.m. to discuss my performanc eevaluation. At 11 a.m. I got on the call with the HR rep and a VP I never met and within 10 minutes was told that I had 2 weeks to find another job in the firm and that there would be no severence. From the end of that phone call until I was turned off of the company e-mail 2 weeks later I never once again spoke with a human being. Worst dehumanizing experience I ever went through. This was what I received for being 100% billable as a consultant in their firm for 18 consecutive months.

I haven’t been laid off but a friend of mine got laid off from a construction company where he worked for 12 years I think. All he got was a “Sorry” and a game of Warcraft. How lame is that!

Great article – i tried to negotiate more severence or at least benefits as i was undergoing cancer treatment at the time – and they said no – my company only gave 1 week for every year and so I was given 2 weeks severence – it’s almost embarrasing. And I left another job for this one with big promise- the saddest part is that the layoffs were done right before the holidays so the EVP and VP could still receive their bonuses (I worked in finance) by making the bottom line look better. Everyone was immediately let go that day, and escorted out of the building. And of course, they elimated too many jobs with no one to pick up the slack, so I also received a phone call to be a team player and give them advice on how to run our corporate reports (without any compensation or anything). These companies are clearly eliminating jobs to ensure bonus payouts for the EVPs. We were making a pretty good profit, were the top in our market and doing well. They are taking advantage of a down economy.

I was able to get the company to keep my direct phone line active, with access to voice mail for 12 months so I looked like I was still at the firm for my job search.

The company I worked for gave us a month’s pay without working through the month of December, plus 3 months salary in a lump sum, paid out our vacation, and kept us on insurance paid for 3 months with the option to move to Cobra after. I thought this was fair.

Don’t you think it is also a good idea to ask for a letter of reference at this time rather than wait? After all, now is when your boss knows you best and will probably write the kindest letter for you to take with you.

My company gives six weeks notice in lieu of severance…no negotiation.

Be sure and keep your eyes and ears open to what is going on around you. Many years ago the company I worked for announced they were going to close our data center which had several hundred employees. I started looking around and found a job at another company, but my previous company did not pay me severance because I left before I was given a firm exit day. Bummer I though since the severance was about $15,000. But over the next few months I started hearing stories of other people getting special deals. So I documented all that I could and sent a registered letter to the head of HR saying that based on this I expected my severance, and if I did not get it I would sue. I really didn’t expect anything since with 100,000 employees they had more money for lawyers than I did. But I guess they decided mine(and two other) employees severance was not worth the battle so they paid up.

Well my wife just got laid off from one those big companies you are reading about in the papers. Her severance was pretty fair. She was employed for 8 years there. They gave her a 60 day notification period (which she is getting paid for). During that time she can’t take another job or she gives up her severance). Then baseline severage was 13 weeks right off the back plus 3 weeks for every year she worked there. It total she will get about 45 weeks including the 60 day notice. I guess that’s pretty fair.

I was given a transitional role until the end of April 2009. At the end of the transition assignment, I will get a bonus. As for severance I am getting 10weeks, plus 2 weeks for every year I worked with the company. I plan on trying to find a job right away so I can save all of this money.

Most often than not, employers use performance as an excuse to terminate rather than lay off and pay severance. Some of the top hi-tech companies do that. Hope EEOC takes a look at this type of practice.

Again, this article is not realistic. Most if not all severance packages are “take it or leave it”. As another poster stated, “you have nothing to negotiate with”. Companies today don’t all the sudden grow a heart and start caring especially when it means more money out of their own pocket. If you are at a high enough level where you CAN negotiate, chances are you probably don’t need it anyway.

You give an example of a 50yr old mgr wooed away to move across the country and a few yrs later gets laid off. While i don’t disagree that guys boss would agree that 4 or 6 weeks severance isn’t fair. Him changing that fact is an entirely different story.

When you have a company laying off 20,000 people in one shot do you really think HR is going to sit down with each person and negotiate? If you don’t sign you don’t get anything (and that is made clear in the HR meeting).

I’ve been laid off before and very well could be looking down the barrel of another layoff. Two government cash infusions and the stock price is still tanking. But hey…maybe i’ll see if my stock options can be extended when stock price dumps down to pennies.

Notified in late November of 2008 that my position was to expire in on January 12th. I had been with this company for just about 18 months. I was given 4 weeks of severance (minimum offered) and 3 months of health insurance (I still pay my regular premium). I thought this was pretty fair…especially the 4 weeks severance for 1.5 years of service. I have to agree with the other comments…I am not sure how much leverage an employee actually has to negotiate a severance package. I was told that it was non-negotiable – sign the doc or lose your offer.

Unless you are unionized, a high level manager, or a protected species, it is all up to the whim of the employer in a “work at will” state. Ethical treatment of employees weighs less than dollars in the corporate world. It’s not your father’s company job. If you get anything besides a kick out the door, you’re fortunate.

I was laid off Jan. 15, largely due to the economy and the loss of clients/client budgets. But, I was also targeted by a manager that didn’t like me though he barely ever worked with me, which is extremely unprofessional. And to add insult to injury, the manager has you meet them in a coffee shop by the office to give you the news, then escorts you to the HR person’s office, who won’t let you return to your desk to get your stuff or say goodbye — they go through all your stuff and determine what you should get and ship it to you!!

Frankly, the organization has issues, in a company of 50 or fewer people, 10 quit and 4 were fired during the 10 months I was there.

Unexpectedly though, I think the severance was fair, though there certainly wasn’t any possibility for negotiation. I got 1 month’s pay and health/dental/life insurance through Feb.

It’s still very scary though, and Virginia doesn’t provide much by way of unemployment considering the cost of living in Arlington.

Wow…hearing what most of these severance packages are make me appreciate my company even more. Our package is a full year’s worth of pay, with some extra pay for additional years worked. For others (I’ve been through 3), I’ve had a. my final paycheck, b. about a month’s worth of pay, and c. my final paycheck.

First laid-off in spring. Used fairness gambit, saying letting me go wasn’t fair to the firm. Dodged bullet until autumn when told of lay-off again.

Fortunately, all terms were well-publicized by HR long ago. One month for each year worked, unused vacation pay, and pro-rata share of prior year’s bonus. Also, two months pay per the Federal WARN Act. Total: two years pay. Typical for my industry.

Immediately networked after first lay-off attempt. Started consulting gig at much higher pay in same industry one day after leaving old place. Impressing new bosses to make me permanent. Wife’s employer gives us medical bennies.

Incredible luck or inner drive and skills? I say both. Those who know me say it’s the latter.

Suggest everyone network asap even if unnecessary. Google Federal WARN Act and understand your rights. Upon being laid-off: deal with divisional bosses on specific issues and deal with HR execs on “immutable” firm policies.

Make your own luck and make the best of it!

I feel for the folks who have lost their jobs and wish you all a quick return to employment.

Unfortunately, we get comfortable in our jobs and feel our employer owes us something for our years of service. All they owe us, however, is our paycheck for the current pay period.

Gone are the days of loyalty to an employer. Employers are not in business to be loyal to their employees. They are in business to make money.

Workers should always have their resumes up to date, and be networking with current and former co-workers.

Getting too comfy in your job is not good because you are not entitled to keep your job.

Sooner or later, I fully expect to lose my job (it happened to both my parents). All I can do it try to be prepared.

Companies are not required to give any severance at all.

Our hurt feelings (for being let go)seem to cloud the logical notion that our employers don’t owe us anything more than our current paycheck.

Getting laid off is not personal. It is a business decision. The consequences of being laid off, however, are very personal.

i was laid off 2 mnths ago and it was brutal. this`was my first layoff and i had no clue. we were not given any severance, not even paid through the pay period and did not get the last few days of vacation accrual.Very nasty the way the company handled this layoff. Later on I hear they are hiring more people, while the reason we were let go was because of the economy. I feel cheated specially since I was coming from a big cos to this startup.

Jane, it’s hard to say without a bit more info. Are there layoffs going on at his company, or would he be the only one being let go? Also, are you saying his company wants to fire him for cause (performance reasons), or are they eliminating sales jobs because of the recession?

This all sounds nice, but were I work there is no union and usually they just fire your rear end it is cheaper that way. There is no negoatation at all and if the manager doesn’t like a person they target them and fire them. Our HR department is for the management.

Flint, look at it from the employer’s point of view: What they want you to do is, quietly sign the severance agreement, don’t sabotage any systems on your way out, don’t badmouth them in online chat rooms, don’t sue them, don’t go to work for a competitor… That severance agreement asks certain things explicitly and others implicitly. They want your signature? Maybe — just maybe — they have to sit down and negotiate for it… not in all cases, of course, but certainly in some.

Ha! No, we don’t make it up. Not everyone can negotiate severance, of course — but for those who can, it is worth a try.

I’m well aware of that. (Some people seem to think there are laws requiring employers to pay severance but, alas, it is not so.)

64+ yrs old with 34 yrs service received 26 weeks severance…another associate released in his mid 30s with less than 5 years service…received 20 weeks severance.
Both paid approx the same base and commission…policy states 1 week per year service…with max of 26 weeks per HR.

My husband sells software and is close to being fired because companies aren’t buying (given the economy). He’s been with his employer for over 10 years and would be eligible for 5 months’ severance were he to go through a layoff instead of being fired. Any room to negotiate for severance in that situation?

Severence in my case was a joke. I worked for the same company for over 24 years and they gave me 3 weeks severence and a thank you. I worked in the Architectural industry and there 14 (about 20% of staff) of us on that dreadful day that go the bad news.
Soon after that the rest of the staff got their end of year bonuses. Ugh!!

My advice for everyone now is to not rely on an employer to do the right thing. Make sure that you always continue to expand your knowledge. While working always make time to attend school to get another degree or learn additional skills. That way when the ax falls you will have additional options. I wish I had done that.

Just got terminated/laid off last week. I asked my boss if this was a layoff or permanent, and he just shrugged his shoulders. Asked about severance, and again, a shrug. He didn’t think this through. I get it that my job is over, but there was no letter explaining anything (disposition of 401K, pay for unused vacation, etc.). Then I had about an hour to get my stuff together and type a memo about where certain things were located on my computer, in my office, etc. I would like to have had time to say good bye to my co-workers after 5+ years.

Severance seemed fair, selection process and 2-weeks notice after 24 years didn’t. Not sure how Motorola structured such a large layoff without strict adherence to the 60 day notice rules…

I was laid off last week. I suppose the severance package is better than most. However, 2 weeks ago (before the layoffs), one of my peers resigned, vacating a position that is now open. I have 2 questions for my manager today 1.Will the position be filled and I would like to be considered. 2. If the position is frozen, I’d like to request a leave of absence instead of a layoff in anticipation that this position will open in the next 6 – 12 months.
My last day with the company is 2/22. If I am laid off, I stand to lose my seniority and years of service, if I return to the company after 6 months. If I take a leave of absence my years of service stay intact.
The LOA is up to the discretion of my manager. The company loses nothing – I pay my medical and they do no have to pay a severance.

While this sounds great I am not sure that any company has an incentive to give anymore severance than what has already been spelled out in some HR manual. This is especially true of large firms with thousands of employees. It can’t hurt to try I guess but I can assure my company wouldn’t have done anything more.

Yeah last year I got severance…invested it all…and then I lost it all. Great huh?

Annie, not everyone is “offered” severance pay in any shape or form.

I was recently laid off and was provided 9 months of severance, early retirement (I was 48) and outplacement services. I was a mid-level manager so I think that the total package was very fair. There was a non-compete that was onerous but I was able to get it reduced to just a few key competitors.

Apparently the person who wrote this article doesn’t live in the real world. Negotiate a better severance?? are you serious?? Unless you’re an executive all your boss is going to say is “i have no control over that” and then quickly get you out of his office.

I swear…do you people just make this stuff up just to post an article??

After 31 years in the same company
(in the same department!!)layoff is in the air.
Our usual severance package is:
One week of salary and health insurance for each year of service.
It suddenly does not sound so great, even though i realize it may even be one of the better offers around.
I am 63. My 401k has been hit hard
and i wanted to work another 2 to 4 years; possibly longer.
The event is taking my breath away, not to mention a lot of those plans people tend to, foolishly, delay until after retirement.
Any clear-headed advise would be appreciated.

I was laid off in June and I guess the severance was fair. I received a week’s pay for each year I worked (6 years), plus payment for unused PTO days (15 days) and continue medical coverage for 6 months. All I had to pay was my share of the insurance premium ($69/mo.) 98 others were laid off at the same time.

I was laid of in ‘93 from a company that I’d worked at for 3 years. I was given a week and a half’s notice and one week’s severance. I was furious! If I had resigned with anything less than 2 weeks of notice they would have called me unprofessional, but they felt fine about laying me off with less. To make matters worse they presented me with an offer of 2 extra weeks of severence if I signed a document saying I wouldn’t sue over the layoff. They said I was not signing it under duress so it would hold up in court. They just took away my source of income – how is that not under duress? The truth is that the company was running out of work and the layoff was legal. One week severence would have been unjust but the 3 I got by signing the document was fair. However, the short notice and blackmailing me over the full 3 weeks was grossly unprofessional.

Back in 2001 when I was RIFed, I got two weeks per year of service, plus all of my vaction pay + cobra, which amounted to about 5 months of pay. No negotiation was allowed. It took me a year to find work. Just when I thought I might have work, 9/11 happend and everything dried up for six months. It wasn’t any fun.

My advice if you think you’re going to get laid off is to take care of all of your (and your family’s) physicals and dental checkups as soon as possible while you’re still employed. Possibly take term life insurance since there is a six month waiting period.

Get rid of all non-essentials – cable TV, etc. Keep internet. Scout out potiential places to work before you’re laid off. Write targetted resumes. Find out where all of the people you used to know work now. Network, network, network – quickly – since all of your “friends” will turn a cold shoulder to you once you’re unemployed.

Don’t let it get you down. Just keep plugging away till you find something. The day will come when the sun rises and you’re climbing in your car to go to work again.

Negotiate? When two parties negotiate, they both have something in hand to offer, that’s how negotiation works.

When you’re laid off, how do you negotiate? What do you offer in return? Ask for extended health insurance, in return for what?

This article made no sense whatsoever.

My employer just “laid off” a number of people. The criteria was not performance or seniority. Too soon to say any sort of discrimination occurred. Big delay in getting severance paperwork out the door. All in all, not much anyone can do about it.

Our severance was non-negotiable. I received 4 weeks for every year, as well as vacation pay and 2 months for COBRA. Overall not a bad package… but I would rather still be doing my job! Best one I ever had.