Reduction/Restructuring jobs - Employee declines new job

How do you handle situations like the following?

We have recently downsized and placed 3 salary employees on layoff, combining their jobs with other duties. The laid-off employees were given 2 weeks notice of a 90-day layoff. If they are not recalled by end of 90 days, they are terminated and eligible for a severance package. Their replacements were told if they didn't want the new job, they could turn in their resignation.

The employee who is staying but whose job changed decided she didn't want the redesigned job after trying it for about a month. Again, I will have to accept her resignation (no unemployment or severance either).

In the past if a laid-off employee got a job elsewhere, they didn't lose their severance $. This was OK for most cases because they weren't recalled within their 90-days of work...except in 1 case where we allowed an employee who was fortunate enough to get a job elsewhere during his 90-day layoff period to get his severance $ immediately. Looking back now, this was a mistake.

So now we have to recall an employee back from layoff to her previous job (as now combined). If she says "no" because she has enrolled in school (not a job), then basically she is refusing employment and loses her right to unemployment and severance (which she is counting on to pay bills).

I wish I could be "nice" but don't see how I can be flexible on above without creating more problems the next time. Am I missing something on unemployment here?

Appreciate hearing your advice & experiences.






Comments

  • 3 Comments sorted by Votes Date Added
  • Based on your post, the issue appears to be whether the latter employee is entitled to severance pay and unemployment benefits if she turns down the restructured job. I wouldn't give her the severance pay, which is consistent with your practice, and let her take her chances with your state's agency that is responsible for unemployment benefits. Although she enrolled in school, the bottom line is that there was a job available for her and she turned it down.
  • I wouldn't necessarily count on her not being allowed to collect unemployment in this case, stranger things have happened and there is the issue of the job she was initially hired to perform (job description). As far as the structure for your severance package, if she agreed to the terms I do not believe you are obligated to pay,did the employees have to sign anything to show they were in agreement with the terms? I would however go over your severace verbage to make absolutely certain that she could not force the issue of paying her severance on a legal ground you haven't even considered yet. I would check with your legal counsel and have them go over your documents in the meantime to make sure that there are no loopholes or surprises.
  • No - we have only had them sign agreeing to allow a deduction from severance for any hours not worked before their layoff became effective.

    Have requested review by corporate counsel - unfortunately they are slow to respond. While I was waiting, I wanted to get some "been there, done that" thoughts.

Sign In or Register to comment.