Layoffs, Voluntary Separation, Severance, Waiver of Rights
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Layoffs, Voluntary Separation, Severance, Waiver of Rights
I have worked at a major publishing for more than 30 years. Recently, the company brought in turnaround consultants who apparently have recommended huge layoffs. On Friday the company announced a voluntary separation offer under which employees could be voluntarily laid off under the current severance policy which, by the way, was changed last year just before a previous round of layoffs with substantially reduced payouts over the historical severance policy that had been in place for many years. The memo announcing the voluntary separation plan implied that there would be layoffs after the offer expired and that the severance provided then would be reduced even further, though it gave no details. We have until noon Wednesday to decide if we want to apply for this separation deal. This gives us 3 business days to decide on something that may affect the rest of our lives. Im 65 and would prefer not to retire yet, but I sense that I may be among the first people targeted in the post-voluntary separation layoffs. Hence Im leaning toward taking the offer. Still, Im not sure, and I feel like the company is putting undue pressure on us to make a quick decision without our having time to weigh the implications fully. Those of us who take the deal will be expected to sign a general release, which I understand will waive certain legal rights, though I havent seen the language of the release. What do you think? Is there anything wrong here I should be aware of? Should I be skeptical of this offer? Should I balk at signing the release? Am I in any way protected against age discrimination at 65, or am I out of the protected category? Are there additional things the company should disclose? Any other things I should know? I can provide the text of the announcement of the separation program if you need it.
Asked on July 31, 2016 under Employment Labor Law, Illinois
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
You are protected against age discrimination, but that only protects you if the reason for your termination from employment is partially or wholly based on your age. If this is a bona fide reduction in force or layoff, and people younger than 40 as well as over 40 are being let go, it is highly unlikely that you could establish a discrimination claim.
While you will be waiving (giving up) rights if you take the voluntary separation, unless there is provable discrimination and/or a violation of a written employment contract (if you have one), the company could let you go without paying you any compensation or severance. Hence, if the package is reasonably generous, you may wish to think carefully about taking it.
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