Skip to content

Breaking News

Author
PUBLISHED:

Dear Reader: If you lose your job, what are your rights during layoff conversations and how should you handle a termination meeting?

If you are told you’re being laid off, whether it’s a group video call, in a conference room with your boss or a similar scenario, there are several important things to keep in mind.

Although there are many layers to a layoff, including the emotions of grief, shock and purpose since our jobs are often inextricably linked to our identities, this column focuses on the legal aspects from experts.

Michelle Smith Cotto, human resources consultant and assistant general counsel, Engage PEO, said, “Employees should be aware that they have rights when being laid off and they might be able to negotiate a severance package.”

Don’t sign anything before you thoroughly review the documents.

“Employees are encouraged to find a local attorney specializing in employment law to review the documents. Separation agreements must comply with state and federal laws — an experienced attorney can help the employee understand and navigate the process,” said Smith Cotto.

In addition, she advised employees to get the employee handbook, relevant company policies, your offer letter, a union collective bargaining agreement or employment contract. “Employees should realize there is no harm in requesting a severance agreement or attempting to renegotiate one if offered,” said Smith-Cotto.

“Longer-tenured employees, employees of companies concerned with reputational risks or those in specialized fields may have more leverage, but all employees are encouraged to make the request. Employees should also request information about unemployment, workforce training and other benefits before signing off on a severance package. Both parties should review policies on whether PTO is paid upon termination.”

According to David Fish, partner at Romano Law, “A terminated employee is not legally required to sign a separation agreement upon termination.”

Fish also recommended things to look for in the document. “A few key things to look out for are the amount of severance (if offered), the official termination date and language relating to insurance benefits, retirement benefits, non-competition, non-solicitation, confidentiality, waiver/release of claims and the type of termination (for cause vs. without cause and resignation vs. termination). Generally, employers are not required to offer severance. Whether an employer must provide severance will depend on the terms of the initial employment contract and/or the policies of the company.”

Fish pointed out that separation agreements requiring the employee to certify that they resigned without good cause or have been terminated due to misconduct may exclude that employee from being able to collect unemployment benefits.

Above all, if your employer pressures you to sign separation paperwork urgently during the layoff conversation, attorney Thomas Ricotta at Ricotta & Marks, said it’s a pressure tactic. “There is no advantage for an employee to sign it then and there,” he said.

Tribune News Service