Furloughed, laid off, or terminated during the pandemic? If your company offers you a severance to waive all your rights, what should you do?
Recently, we have seen numerous employees and executives who are given notice and receive a termination package or “severance agreement.” Often, the notification will be accompanied by a time limit – in some instances, a very short time limit to consider a document that requires you to waive all your rights. Though it seems tremendously unfair, some employers make this notification on a Friday and require an answer by Monday morning. Some employers are using the pandemic as an excuse to terminate employees and senior executives unfairly and in violation of their rights. What should you do?
It is important that you have a knowledgeable attorney carefully review the proposed separation terms and severance offer. Inevitably, your signature on the document will amount to a complete waiver of any rights you may have had and any basis you may have had to receive compensation beyond the terms offered. It is essential that someone with an understanding of your rights and the applicable laws review your situation as quickly as possible – before you sign anything.
Assemble all your documents and relevant correspondence and emails as quickly as possible, but if you do not have all of them, do not delay in getting assistance. Employers often try to take advantage of adverse circumstances, whether it’s a downturn (such as the current pandemic) or a recent negative performance evaluation (that did not seem fair) to let you go. If you have a contract or signed offer agreement, it will be important to carefully review those terms. If you are a union employee, the terms of the collective bargaining agreement will govern many aspects of the separation. Keep in mind that even without a contract or other governing agreement, you have rights that should not be waived under pressure and without a full understanding of your options. A careful review of your work history with good counsel is crucial. And, as far as the time pressure, your attorney should be able to obtain an extension of the arbitrary time limit your employer has created.
Often, the terms of a proposed severance can and should be properly negotiated to your benefit. It is important you have knowledgeable counsel to guide you through the process. Our attorneys are available 7 days a week to assist.