Severance Pay Question

2,509 Views | 20 Replies | Last: 10 days ago by jh0400
wangus12
How long do you want to ignore this user?
AG
My wife was recently laid off by her company. They were given 2 months of "garden leave" (she's technically employed, but no longer working) after which she will receive severance pay based on longevity with the company.

Her company is now hiring some positions back and she might reapply to keep multiple options going. She does have a concern about reapplying though. She is worried that if they offer her the new position and she declines it (because maybe she gets a better offer somewhere else), she will no longer receive the severance check because she told them no. I wouldn't think they can do that, but I have zero knowledge how it all works. Any advice or knowledge on the subject?

I bleed maroon
How long do you want to ignore this user?
AG
Some thoughts from my past: If it's a foreign company, "garden leave" is pretty much sacrosanct - you can't really do anything to jeopardize it.

As for severance, my guess is that if the new position is either equal to or greater than her former job in terms of pay or responsibility, she will probably put that in play by turning down an offer. I'd have her talk to HR, and explain the situation, and throw out some "what ifs" confidentially. The safest thing to do is wait until the severance period is mostly over before applying for another job, UNLESS the one available now is one she really wants, in which case, who cares about losing severance if she's better off and/or happier than before?
Petrino1
How long do you want to ignore this user?
wangus12 said:

My wife was recently laid off by her company. They were given 2 months of "garden leave" (she's technically employed, but no longer working) after which she will receive severance pay based on longevity with the company.

Her company is now hiring some positions back and she might reapply to keep multiple options going. She does have a concern about reapplying though. She is worried that if they offer her the new position and she declines it (because maybe she gets a better offer somewhere else), she will no longer receive the severance check because she told them no. I wouldn't think they can do that, but I have zero knowledge how it all works. Any advice or knowledge on the subject?


The answer to this should be addressed in the severance package verbiage, has she received the letter yet? She can always ask someone in HR as well.
rme
How long do you want to ignore this user?
AG
I bleed maroon said:

Some thoughts from my past: If it's a foreign company, "garden leave" is pretty much sacrosanct - you can't really do anything to jeopardize it.

As for severance, my guess is that if the new position is either equal to or greater than her former job in terms of pay or responsibility, she will probably put that in play by turning down an offer. I'd have her talk to HR, and explain the situation, and throw out some "what ifs" confidentially. The safest thing to do is wait until the severance period is mostly over before applying for another job, UNLESS the one available now is one she really wants, in which case, who cares about losing severance if she's better off and/or happier than before?
hahaha
infinity ag
How long do you want to ignore this user?
The job of HR is ALWAYS to protect the company. Not the employee. Don't be fooled by whatever they may claim. They are not on your side. They just want prevent the company getting sued.
ATM9000
How long do you want to ignore this user?
AG
I bleed maroon said:

Some thoughts from my past: If it's a foreign company, "garden leave" is pretty much sacrosanct - you can't really do anything to jeopardize it.

As for severance, my guess is that if the new position is either equal to or greater than her former job in terms of pay or responsibility, she will probably put that in play by turning down an offer. I'd have her talk to HR, and explain the situation, and throw out some "what ifs" confidentially. The safest thing to do is wait until the severance period is mostly over before applying for another job, UNLESS the one available now is one she really wants, in which case, who cares about losing severance if she's better off and/or happier than before?


I don't understand why it's an in confidence thing… everybody absolutely needs to know the deal and parameter ahead of something like this: wife, hiring managers and HR. Severance is generally too valuable to be done in whispers and cloak and dagger. Ask the question and you'll know pretty well what you need and want to do fairly quickly.
El Chupacabra
How long do you want to ignore this user?
I was laid off on 10/25 and told I had a job until 12/31, as I needed to train my replacement. I was also given a severance.

During that 2 month time I was told if I left prior to 12/31 to a different company, I forfeited my severance, pretty obvious.

I was also told that if the company offered me a reasonable job in a reasonable location, and I declined it, then I would forfeit my severance. I applied for multiple jobs within the company I was well qualified for, didn't get a sniff on any of them, they wanted me gone…so I never had anything to decline. Got my severance package signed and contract for new job signed on 1/3…that was a good day.
infinity ag
How long do you want to ignore this user?
My friend was a C level guy at a company in Texas. He got into issues with his boss the CEO and they agreed that he should leave. Since he was a high up, he got salary and benefits for 1 year.

He recently got a job but has not updated his Linkedin because he does not want the severance and benefits to stop. I think that is a condition for severance to continue - that he wasn't working.

I personally see no problem there. Corps lie to you all the time. Feel free to lie back and take them for a ride too. It is high time we all did that.
Kenneth_2003
How long do you want to ignore this user?
AG
I would NEVER under any circumstances entertain the idea of even considering a new position with a company that had previously laid me off.
infinity ag
How long do you want to ignore this user?
Kenneth_2003 said:

I would NEVER under any circumstances entertain the idea of even considering a new position with a company that had previously laid me off.

Same.
Even if I left on my own. It feels like I am going back in time and made no progress in the intervening years.
Best is to move on.
BenTheGoodAg
How long do you want to ignore this user?
AG
I think there are some industries where it makes more sense than others (ie construction industries staff up/down on mega projects), but generally agree with this sentiment.

Went through a layoff after a decade with a company. It was almost like a divorce for a lot of people who spent their whole careers there. Civil enough at times, but the trust was completely broken. Never gonna remarry with that company.
cjo03
How long do you want to ignore this user?
AG
Kenneth_2003 said:

I would NEVER under any circumstances entertain the idea of even considering a new position with a company that had previously laid me off.


I know plenty of successful boomerangs - most common is the layoff happened under one leadership regime and returned after that leader left.
Kenneth_2003
How long do you want to ignore this user?
AG
Fair... Under that level of seismic shift within the org.
Doesn't seem to be the case here where there is still a severance in place.
wangus12
How long do you want to ignore this user?
AG
Kenneth_2003 said:

I would NEVER under any circumstances entertain the idea of even considering a new position with a company that had previously laid me off.
I think the only reason she (mainly me actually) is even considering it would be a slight promotion to a senior position which would open doors elsewhere and some really great benefits (free flights and outstanding healthcare).

However, Southwest Airlines is actively imploding themselves thanks to poor leadership and Elliot investors so it probably is best to move on.
El Chupacabra
How long do you want to ignore this user?
cjo03 said:

Kenneth_2003 said:

I would NEVER under any circumstances entertain the idea of even considering a new position with a company that had previously laid me off.


I know plenty of successful boomerangs - most common is the layoff happened under one leadership regime and returned after that leader left.
I'd go back to the company that laid me off for the right position and the right pay, but if it was the same leadership, I wouldn't even entertain an offer.
htxag09
How long do you want to ignore this user?
AG
For the OP, someone mentioned it but read the severance package.

For some of the other comments, I agree about not wanting to go back to that company. Not just because of the layoff, but because they did too big of a lay off and are hiring people back? This company seems like a cf w/ poor leadership. Also, wouldn't this open them up to potential liability? Would be hard to say it's a lay off if you're now backfilling.....
EclipseAg
How long do you want to ignore this user?
AG
Years ago, our entire department was let go in a cost-cutting move (thanks, Andersen Consulting).

The details on the line item "to cut" budget had been marked out for the board meeting, so they just voted on the amount without realizing that was the entire department's salary and expense.

When he realized what had happened, the CEO tried to hire back a skeleton staff ... even came to my office personally to ask me to stay. But none of us accepted the offer; we all said good riddance.
LOYAL AG
How long do you want to ignore this user?
AG
Kenneth_2003 said:

I would NEVER under any circumstances entertain the idea of even considering a new position with a company that had previously laid me off.


One of the smartest things I've done in my career was walk back a layoff and stay with the company. They were consolidating corporate accounting away from where I lived to the home office in another state over the next six months and at the same time acquiring a competitor in San Antonio. My entire office was laid off then a month later I was sent to SA for due diligence work. While planning out the SA trip the CFO told me he was going to have to hire a Controller for that position and I said I'd be interested in it. He immediately said if I wanted it he would hire me for it. We spent the weekend looking for houses near the office then when the acquisition went through we moved.

Never be emotional about this. It's a business transaction for them so it has to be for you as well. If you're emotional and they're business they have the upper hand. If you would've considered the new position before the layoff then why not during or after?
A fearful society is a compliant society. That's why Democrats and criminals prefer their victims to be unarmed. Gun Control is not about guns, it's about control.
Petrino1
How long do you want to ignore this user?
LOYAL AG said:

Kenneth_2003 said:

I would NEVER under any circumstances entertain the idea of even considering a new position with a company that had previously laid me off.


One of the smartest things I've done in my career was walk back a layoff and stay with the company. They were consolidating corporate accounting away from where I lived to the home office in another state over the next six months and at the same time acquiring a competitor in San Antonio. My entire office was laid off then a month later I was sent to SA for due diligence work. While planning out the SA trip the CFO told me he was going to have to hire a Controller for that position and I said I'd be interested in it. He immediately said if I wanted it he would hire me for it. We spent the weekend looking for houses near the office then when the acquisition went through we moved.

Never be emotional about this. It's a business transaction for them so it has to be for you as well. If you're emotional and they're business they have the upper hand. If you wouldn't considered the new position before the layoff then why not during or after?
Great advice. Its a business decision, and I probably would have done the same in their shoes if I owned the business. I would go back to previous companies that laid me off if the money and situation were right.
hindsight
How long do you want to ignore this user?
cjo03 said:

Kenneth_2003 said:

I would NEVER under any circumstances entertain the idea of even considering a new position with a company that had previously laid me off.


I know plenty of successful boomerangs - most common is the layoff happened under one leadership regime and returned after that leader left.
I haven't seen it happen a lot, but I'm aware of a few success stories. I know someone who got two (generous) severance packages from the same company. That's living right.
jh0400
How long do you want to ignore this user?
AG
htxag09 said:

Not just because of the layoff, but because they did too big of a lay off and are hiring people back? This company seems like a cf w/ poor leadership.


My company has done a few rounds, and my experience has been that it is easier to go a little deeper on the cuts and add back a few jobs than it is to go through all of the effort and loss of employee trust to miss on the desired outcome because you missed on threading the needle.
Refresh
Page 1 of 1
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.