RIF/Implied Blackmail
catherinetnc
79 Posts
We adopted a severance policy from a billion dollar company from whom our company bought a subsidiary. Because there were RIF issues, we had to follow that company's severance plan. Being that our company was quite small and never had to deal with RIFs, we never had a plan. Consequently, we decided to adopt this company's plan as it seemed reasonable, fair and generous.
Evidently, not generous enough. Our plan gives one week of severance pay for each year employed, with a two week minimum. If your base pay is pay is $50k, your minimum is 8 weeks, if your base is $75k, the minimum is 12 weeks. We also offer 2 additional months of insurance and job placement services.
We are not a huge company. One employee who was a manager insists his lawyer tells him he should be due one month of salary for every thousand dollars he was paid. That would be over 40 months of severance. Call me crazy, but that seems ridiculous.
I want to give the dude a copy of our severance agreement and tell him that I'd like to speak to his lawyer. We are downsizing the operation (from 14 people to 8 people) we offered him the head position at a lower rate (not as much responsibility) - he declined. He implies that his lawyer is eager to pursue this. (that's the blackmail part). We as a company have been above board in our dealings with him and I don't think he has any real claims he could make against us - just the significant expense of defending ourselves in court. Also, the job placement services we offered him cost $4500.00
This is in Massachussetts.
Any suggestions? Thanks in advance!
Evidently, not generous enough. Our plan gives one week of severance pay for each year employed, with a two week minimum. If your base pay is pay is $50k, your minimum is 8 weeks, if your base is $75k, the minimum is 12 weeks. We also offer 2 additional months of insurance and job placement services.
We are not a huge company. One employee who was a manager insists his lawyer tells him he should be due one month of salary for every thousand dollars he was paid. That would be over 40 months of severance. Call me crazy, but that seems ridiculous.
I want to give the dude a copy of our severance agreement and tell him that I'd like to speak to his lawyer. We are downsizing the operation (from 14 people to 8 people) we offered him the head position at a lower rate (not as much responsibility) - he declined. He implies that his lawyer is eager to pursue this. (that's the blackmail part). We as a company have been above board in our dealings with him and I don't think he has any real claims he could make against us - just the significant expense of defending ourselves in court. Also, the job placement services we offered him cost $4500.00
This is in Massachussetts.
Any suggestions? Thanks in advance!
Comments
Follow your policy, offer it, if he refuses it let him go with no severence. If your documentation is in order don't sweat it. One week per year, with miminums established based on salary level is gererous. Companys DO NOT have to give a severance package. Companies your size are not held to the WARN act like others. He can take it or leave it. Either way I would get rid of him quickly.
My $0.02 worth,
DJ The Balloonman
There's nothing here that says you have to follow through with any type of severance package in Mass - let alone some sort of spelled out amount of $ per thousand made. If you've already adopted a severance package program and you're not deviating from it, then let the ee know that the offer is non-negotiable & give him the opportunity to review the package with his attorney & you'll await his signature - I can't remember off the top of my head how many days folks get to think about it before they sign...
My $0.02 worth,
DJ The Balloonman
If it is an individual separation agreement the individual can have 21 days to consider and 7 to revoke after signing. If it is a group of individuals the time frame is 45 days with the same 7 day revocation. Additionally, if it is a group you have to give selected/nonselected lists to the RIF's.
There is no attorney under the sun that would propose such a ridiculous ruse. This sounds like a scare tactic to me from an employee who has their attorney on speed dial or claims to.
Offer according to your policy and let it go at that.
I called his bluff - he backed down and indicated he didn't want to get his lawyer any more involved, and since it was the holidays he'd let it slide . . . (bless him) - and sent me the signed doc.
Thanks again for your support . . .
Catherine
His behavior comes under the category, no good deed goes unpunished. If I were you, I would keep an eye on him, and would have little faith or trust in him.
My $0.02 worth,
DJ The Balloonman