Career Protection’s Annual Layoffs Forecast predicts a 37% increase in companies planning layoffs and reductions in workforce this year.

"This is our worst layoff forecast in the past five years for employees, as corporations appear ready to slash staff and layoff workers." Kirk Nemer

Kirk Nemer, J.D., SPHR

“The only good news provided by Executives and Senior Vice Presidents in our survey was that companies were planning to provide severance pay during these difficult and stressful times,” Nemer stated. “However, it appears the severance packages will not be as generous in their severance pay as they have been in the recent past.” Nemer added that, “Employees should negotiate their severance package offers as they’re not a ‘take-it-or-leave-it’ situation. Companies will still require employees to execute a General Release of Legal Claims in exchange for receiving a severance package, so companies will negotiate its terms to obtain one from employees.”

Career Protection has been inundated this month with telephone calls from employees at Bear Stearns, Chrysler, Citigroup, Covidien Healthcare, Ford, GM, Indy Mac and Sprint Nextel, who have announced plans for reductions-in-force in January.

2 Hours Notice
By Kirk D. Nemer, J.D., SPHR

It does not matter whether your company calls it a "mass layoff", "reductions-in-force", "position elimination", "downsizing", "outsourcing", "restructuring", or some other euphemism for having your employment terminated with only two hours notice. You are informed that 'today will be your last day of work and pack up your personal belongings in your office'. Yes, this is a stressful time and a sad chapter of your life, but having your employment terminated by your company could be the best for you and your career. The good news is that you are not alone as millions of people leave jobs for other ones every year.

But I understand; this time, it was not your choice to depart. You were selected to be let go by the corporation. Perhaps you loved your work, your colleagues, and even your company, but now you've been eliminated from your work-life family. People you saw everyday, people you talked and laughed with everyday, people you spent more time with than your own family! You are in shock; you may be angry and even depressed.

But listen, listen very closely: the time is now for you to protect your rights, your family, your career and financial future. Your job is not you; and you are not your job title. You need to get a hold of yourself and not be misled by the company as you are leaving. You need to be prepared for the exit interview and the termination conference.

I received a call from a client to let me know that she was laid off on Friday—the customary day for employees to be terminated so they can 'cool off' over the weekend and not be able to converse with former company colleagues at the office. She was handed several sheets of paper and told by the HR representative that she would receive a severance package and she "needed to sign here". She thought she was signing for the paychecks and the return of all company property in her possession. But over the weekend, she thought about it— "what exactly did I sign?" She stated that she "didn't know because I just was not thinking straight when it was all happening, all I could think about was being without a job". This is how it usually goes. I informed her that in exchange for the severance pay she most likely signed a General Release of Claims, as most companies would not provide severance pay without one. Employees don't know their employment rights and don't know how to 'play the game'. Even experienced, well educated executives don't know their legal rights, or how to protect their careers. In fact, the person I write about was a highly educated, Senior Vice President of a large, national public company! I informed her to immediately revoke her signature from the Release, as she is legally entitled to do by federal law.

Millions of Americans who are offered a severance package, a retirement package, or a buyout offer from companies leave dollars, benefits, and many other incentives on the table as they walk out a company's doors. Most people don't realize they can negotiate for extended pay, more benefits and other terms of their employment departure. Employees also are too quick to sign the release agreements and leave their companies, focusing primarily on the severance pay and overlooking key areas of their packages.

In fact, companies are required in accordance with federal law to give many employees a minimum of 21-days to review a Release of Claims and to be advised to consult with an attorney. In larger group layoffs, the law requires a 45-day period. The federal WARN Act requires a 60-day notice period under certain circumstances. And, regarding the severance package offered - it's never a "take it or leave it" situation - everyone can and must negotiate a severance package in order to obtain what they deserve and have earned.
Be careful out there! When you get a severance package, take it home and review it, even if you're pleased with it. Give it 24 hours. Don't give an immediate answer.
Get what you're worth,
Get what you've earned,
Get what you're legally entitled to receive,
Get Career Protection—your advantage in employment negotiations.


About Kirk Nemer

Kirk D. Nemer, is CEO of HR on your side, Inc./CareerProtection.com, and employment attorney with over 20 years of legal and human resources experience. When senior professionals and executives transition in or out of a company, there is a myriad of issues to consider. Compensation, severance, benefits, retirement accounts, non-compete clauses, discrimination, and other legal rights are being negotiated and can dramatically affect your career. Once a company, its management, and its Human Resources/Personnel Department make a decision about your employment, you need advice specifically tailored to you, your experience, and your employment situation.  
 

Resources:

---