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What to Do When You Are Let Go
The Termination Meeting
When you get the news that you are being laid off or terminated, you will probably be quite emotional — especially if you didn’t see it coming. Ask questions if you can, but don’t say much yourself. Try to find out why you were selected for termination and who else might be involved. Find out whether the employer will provide a full reference or just dates of employment and last salary. Take notes if feasible.
The decision has been made, and arguing won’t help. Angry outbursts are not helpful and may interfere with getting a good reference.
If you are over 40 and are being terminated as part of an AEXIT-incentive (a voluntary) program, or as part of an involuntary employment termination program, you are entitled to special notices. The employer must notify you in writing of:
• the unit or group subject to the program,
• the eligibility factors for the program, as well the job
titles, and
• ages of those selected and not selected.
The Older Workers Benefit Protection Act (OWBPA) requires this notification, among other things.
Employers often present a severance package at the meeting where you learn that you will be terminated. The severance agreement will usually require you to release all claims that you might have against the company in exchange for a modest payment. This is especially likely where the company does not have a formal severance policy. Do not sign the agreement at the meeting. Take it home. Once you have had a chance to calm down, read it carefully. Read any severance or release agreement carefully and try to understand it before you sign it.
If you are permitted to go back to your desk, or if the employer provided you with substantial notice before your last day, try to collect things that may be useful to you that are not the property of the employer. For example, you may wish to note contact information for vendors, customers, etc. to assist you in your search for a new job. But downloading the entire customer list if it is a trade secret may get you in trouble.
Collecting Your Thoughts at Home
Once you get home, write down what you can recall about the meeting at which you were notified of your termination.
If you are over 40 and received the OWBPA list, review it carefully. Are almost all the workers selected for termination older, while almost all the workers retained under 40? If so, consider seeing an employment lawyer. There may be age discrimination at work.
Look at your employee handbook or any individual employment agreement you might have and check to see that you will receive all of the benefits to which you are entitled, such as:
• Vacation pay
• Paid time off (where sick pay and vacation are combined)
• Bonus payments
• Commissions earned
• Contributions to retirement or pension plans earned
Find out how much your COBRA payment will be. You may find the COBRA payments shockingly large and may wish to shop for other health insurance.
Try to Negotiate a Sweeter Deal
After carefully reading all the separation materials, think about whether there is anything else you would like from the employer. Consider asking for some of the following, as appropriate:
• Greater cash payment
• Continuation of health insurance
• Outplacement assistance
• Favorable letter of reference
If the employer claims the termination is performance-related, try to negotiate an agreement that will not contest your claim for unemployment benefits.
What to Tell Prospective Employers
Be honest. Even if you disagree with the employer’s decision to put you among those selected for termination, you can state what the employer told you without indicating agreement with it. For example, you can say, “The company said it had to let me go because sales were down and it had to reduce the payroll.” Then move on and accentuate the positive about yourself.
Amy Semmel is an attorney with the firm of Donfeld, Kelley & Rollman. Her practice emphasizes employment, trade secret and business tort law. The information discussed here is a general explanation of the law, and is not intended to serve as legal advice. Readers requiring legal advice regarding a specific situation should consult an employment attorney.
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