As in love, the work relationship rarely ends smoothly.  Keep your cool.  Never, ever, react to being told you are let go, terminated, fired, or laid-off. 

It is possible to get broken up with or fired via telephone, video or email. Regardless of the method, treat the situation the same: never react.

Always keep your composure. No one will negotiate with or respect a hot head. Don’t call your colleagues or the company names.  Staying professional will maintain your dignity and self-respect.  Yelling, screaming or acting on vengeance will only give away your power to the other side.  You don’t need to do that.  Every situation is one that you can grow from, and as of the moment you have been let go, you need to be strategic and deliberate in your actions. Act intentionally and not recklessly.  Depending on the nature of the termination, unless you are terminated for cause, you may be handed papers to review. Take your documentation and leave.  Never sign a document in the heat of the moment.  You will have too much anxiety to think clearly. Also, stay away from your computer. Don’t take away any files, data or lists or notify your colleagues.  Take time to absorb the information you have been given. In many states, you will be given your last paycheck and any accrued, unused vacation time, depending on your Company’s policies.  Many states require that an employee be paid in full on the date of termination if the Company is the one terminating the employment. Check your last paycheck carefully, as many states have added protections for wages if unpaid (treble damages plus attorney’s fees, for example) and it’s important to know when and what your payout should be.

You may be handed what is called a “Separation and Release Agreement” or a “General Release of Claims”. This is a document that may offer you benefits in exchange for your acceptance of waiving your right to sue the Company.

If you are over 40 years old under what is called the Older Workers Benefit Protection Act (OWBPA), you will be given at least 21 days to consider any offer.  If you over 40 and are part of a group being let go, you will be given 45 days to consider any offer. 

The Agreement may contain one or more of the following provisions:

• Terms of Separation and Benefit Cessation
• General Release of Claims
• Waiver of Rights and Claims Under the Age Discrimination in Employment Act
• Covenant Not to Sue
• Company Files and Property
• Future Conduct
• Nondisparagement and Confidentiality of Agreement
• Cooperation
• Governing Law

Read each provision carefully and understand what is being asked of you to give up, in exchange for accepting the terms of the legally binding document. Don’t be afraid to ask for further explanation if something seems unclear.

In employment separations, the more detailed the Agreement, the more likely you should obtain individual counsel and representation.  The Employment Divorce is here to help you understand complex terms. Items like equity,, restrictions on future employment, non-disclosures, and non-solicitation provisions, as well as remaining and unpaid bonuses, cannot be adequately addressed here, as individual circumstances vary greatly.

Most importantly, more complex issues such as stock options and deferred compensation may have significant tax considerations that you need to have reviewed by appropriate professionals.

As always, the Employment Divorce^® and Employment Therapy^® are here to help and guide you through this process.  Contact Us.