Recalling from RIF - Question of severance pay
Christine M
66 Posts
[b]Background:[/b]
We had a fairly large RIF in August. We eliminated an entire function which we have found that we still need and want to recall an employee. We paid all employees severance at the time of the RIF (no requirement to sign anything) and the employee in question received 6 weeks severance. This former employee is in her 60's and had fifteen years with the company making her eligible for the maximum severance pay.
We have nothing in our severance policy which describes the process relative to severance pay when an employee is recalled.
[b]Options:[/b]
In the absence of anything in policy and considering that the employee having just had 6 weeks off with pay may not be fair to others, I see three options:
1. Ignore it and the employee has just had a six week paid vacation
2. Require her to repay it (not in policy) as a condition of reemployment
3. Have the employee sign something where she selects the option of paying back the six weeks or agrees that for future situations where severance pay might be offered, her eligibility would be determined from the date of rehire.
[b]Proposed Solution:
My preference, given the lack in policy, would be #3 but I'm wondering if you spot any pitfalls.[/b] With our bridging policy, she will receive full credit for her prior service immediately, given the short time out of work.
Also--for future policy revision, what do other companies do in situations such as this?
We had a fairly large RIF in August. We eliminated an entire function which we have found that we still need and want to recall an employee. We paid all employees severance at the time of the RIF (no requirement to sign anything) and the employee in question received 6 weeks severance. This former employee is in her 60's and had fifteen years with the company making her eligible for the maximum severance pay.
We have nothing in our severance policy which describes the process relative to severance pay when an employee is recalled.
[b]Options:[/b]
In the absence of anything in policy and considering that the employee having just had 6 weeks off with pay may not be fair to others, I see three options:
1. Ignore it and the employee has just had a six week paid vacation
2. Require her to repay it (not in policy) as a condition of reemployment
3. Have the employee sign something where she selects the option of paying back the six weeks or agrees that for future situations where severance pay might be offered, her eligibility would be determined from the date of rehire.
[b]Proposed Solution:
My preference, given the lack in policy, would be #3 but I'm wondering if you spot any pitfalls.[/b] With our bridging policy, she will receive full credit for her prior service immediately, given the short time out of work.
Also--for future policy revision, what do other companies do in situations such as this?
Comments
I am your person, and my take is "%#$&*-you" give me a written agreement that says I am not subject to RIF action (eliminated as excess to the company's needs)for the next five years or until I desire to retire unless the executives that made the mistaken decision to make me a part of this past RIF action are also terminated prior to me! Additionally, my six weeks vacation (personal time off with pay) is identified as such and not as a RIF with severence pay. My original hire date is 16 years old and aging.
Bottom line is "call the employee back as a normal recall" and forget the money, re-establish the employees original hire date and appropriate benefits without any strings. I have been through 5 RIFs all were based on a reduction in sales and was given severence pay with all. If any one of the companys had called me to say comeback, I would have jumped at the opportunity. However, if the recall was based on a mistake, I would have been concerned about someone making another mistake.
If once I got back on-board and working I would have been with fresh resume on the streets. The first opportunity that I could bail-out on my own, I would go, even for less pay. Anyone who has written the RIF plan of action and then experienced his/her own RIF action plan, knows exactly how terrible this business action hits home in the heart and mind of people. I hope this helps, Pork
Bring the employee back, don't even think about the severance and any current employee that voices an opinion should be reminded how well they slept these pass 6 weeks.
I can't imagine the person would return if you preface the recall offer with "oh by the way, you're going to have to pay back the severance money you received". If she's an asset to the company and her skills are needed just make the offer to return and leave it at that.
I don't think there is any basis to ask the employee to pay back the severance she has been paid. I also think it would cause problems, including wage and hour problems. But I see no problem with changing your policy so that a person will not get multiple large severance payments.
Good Luck!!