termination

globex

I have a friend that works for a large company. They bought the company that he was working for, for which he had at a very good salary. They cut his pay 60% because he was making more than the techs in the buying company. He plans to quit and is afraid if he gives them two weeks, they will tell him to go now. He had a contract for pay with his first company but nothing with the new company.
The question is, are they obligated to pay him the two weeks severance.

lnelson

No, they are no obligated to pay severance other than unused vacation/PTO and worked hours.
It is at the ER's disgression as far as severance.
Depends on their policy.

Lisa

Don D

If your question is 'Do they have to let him serve out his two weeks notice and pay him for it', the answer is no. But if they do not, he will almost certainly be able to draw unemployment at that point as it will not be considered a 'quit' if they tell him to hit the road now. I have always recommended to people that they never quit a job to look for a job, rather have one landed when you give notice.

globex

Don:

He does have another job. He wants to be honorable and give them time to replace him. However, he also cannot afford to be without for two weeks. I guess I need to find out if they will replace him when he leaves. If the answer is no, then he should not give notice?

Don D

Globex: Here's what I would do if I were him. Call the company that he's going to work for and ask them if he's released early, can they go ahead and start him. If they say yes, he has nothing to risk by giving notice. If they say no, and he is really concerned that he'll be let go upon giving notice, and that will financially strap him terribly, don't give notice, just walk out.

Pork

Your friend might be better off to keep his posture down low and get his resume out on the street. Who knows they might just realize in a few weeks why the other company was paying him so well because he was producing and making the company have value which made them interested in buying the company. Being loyal to the old company some times pays dividends; the reason the new company cut his pay by 60% most likely had nothing to do with what they pay the techs in the purchasing company. It has to do with their perceived worth of the position in which your friend now sits or was sitting in the old, now new company. Compensation is an HR arena which is sometimes hard to understand where management comes up with preceived values and net worth of personalities in any new organization. He should not sale his talents short so quickly.

I would advise him to stay, and publish his new resume, after all UI will be no where near the positive pay and working relations experienced while on UI. I am not sure what it is today but on a few weeks I was happy to get the max UI check of $166.00 per week verses 40 % of previous value in the old company. Do the calculations before one leaps so quickly to the UI line.

PORK