Slashdot Mirror
Dealing w/ Draconian Severance Contracts?
outOfWork asks: "I've just been recently announced that I was getting laid off from yet another dot-bomb company. I have received my papers and they are simply dragonian! I understand the need not to disclose any information on the company I was with (that's only natural; I have also signed a similar paper when I started working there anyways), however the papers they are requesting me to sign do include such terms as not being to sue (should I require to). I thought suing someone or a company was a fundamental freedom that we enjoyed here in Canada. If I do not sign these papers, they do mention that I will not be entitled to my severence's package. I'm fairly certain that several companies do these sorts of things, however do they have the right to do this? This company has had a bad reputation when it comes to how HR deals with certain issues and I'm wondering if they might be trying to pull a fast one on us. With the market being what it is, I could sure use that severence's package. Your input would be very welcome."
Just the threat of a lawsuit and publicity is enough to make many companies 'change' their mind about specific issues. They add these clauses and figure most people don't even bother to read them much less be willing to fight it.
errr....umm...*whooosh* *whoosh* Is this thing on ?
There are plenty of Canadiasian Pro Bonos out there that can help. Even a small investment on your part (1 hour in fees) can save you MUCH grief later. COVER YOUR ASS _BEFORE_ you sign anything!
If we don't fight for ourselves no one will.
Be pragmatic.
I don't support crap like this, but ask yourself a few questions first. Do you believe you have a need or cause to sue the company? Laying you off isn't generally a cause.
Is the severance package more than is required by law? check your provincial, or federal labour code (certain companies, Banks for instance, have to meet only federal labour code.)
If the severence package is more than you would normally be entitled to when layed off, and does NOT include any further requirements as to confidentiality, non-compete etc more than your initial contract then you may as well sign it.
On the other hand, if the non-compete/confidential information clauses are more significant than what you signed when you got your employement you probably should NOT sign such an agreement.
This is getting to be standard operating procedure. In an effort to avoid future legal action they force you to sign. While IANAL, this has been talked about in many places in the US. Most of it is legal, except where asking you to do something illegal.
Your choice is to take the money or plan to win it in court. If you do not have a court case now, take the money and run. If it really is a dot bomb, what will you get in court, your cubicle?
however,
It seems to me that if you are *not* already entitled to such a severance package, that they are, in essence,
making you a settlement offer
which you may or may not choose to accept.
However,
if you were already entitled to the package, and they suddently would not give it to you without this additional condition,
then you could possibly, at a future date, argue during the suit that you were forced to agree to the additional condition while under some sort of duress,
in which case the document may be held to be invalid. But this is risky.
Maybe instead of the collective *cough* wisdom of Slashdot, might I suggest that
you see a real lawyer instead?
When you accept the money you fraudulently signed for.
10 PRINT CHR$(205.5+RND(1)); : GOTO 10
While I agree with you, it can still be useful to get others' experiences in similar situations, regardless of whether or not they're lawyers.
Take the damn severence package. I don't know what your family situation is like but put pride WAY after keeping food in your kids' mouths. Hell, especially if you don't have beef with them besides the fact that they went under, what do you care if you lose your right to sue them?
I for one put bills/food/housing before my sense of feeling hunky-dory.
Finally, math books without any of that base 6 crap in them.
Let me preface this by saying that I am not a lawyer and this post does not constitute legal advice.
I am Canadian and 5 1/2 years ago I went through what you are going through . The most important piece of advice that I can give you is SEE A LAWYER. If you don't know one, get a reference to a good lawyer from friends or family. It won't cost you that much for an initial consultation (maybe $80-$150). It is worth it's weight in gold for the piece of mind of knowing where you stand. Once you know exactly what your rights and the employers obligations are, you can make an informed decision about signing.
The situation that you describe is common these days - the company is looking to limit all liabilities with respect to you employment in order to avoid being blindsided with a costly lawsuit in the future. I worked for a company where that (lawsuit) happened and it cost them big time both financially and in terms of distraction of key management. In exchange for that they offer you a severance package over and above the legal minimum, (which, IIRC, here in Ontario is a paltry one week's pay for each year of service plus vacation pay outstanding). You are legally entitled to your provincially mandated minimum and under no obligation to sign ANYTHING for that minimum.
I don't know what you have been offered but it should be at least one month's pay for each year of service plus vacation pay outstanding. Still, do not sign based on what I just said - get a lawyer to review the terms and advise you. Your lawyer will have a big fat reference book which lists settlements in Canada by industry/job classification/experience. He can tell you whether the financial terms are 'fair' and whether the legal terms are reasonable. The employer is required to give you some time for you to get their 'offer' reviewed by a lawyer. You should not have to sign 'on the spot'.
Also, note that you have a golden one-time (per layoff) opportunity to direct a fairly large chunk of you severance package into your retirement savings (over and a above your allowable annual amount) without income tax deductions under these circumstances. Get the info from your employer or Revenue Canada. You will never see that money - it goes from directly from your employer into the retirement plan that you designate BUT IT IS TAX FREE and once of the few 'gifts' that you'll get.
Best of luck finding a job. Layoffs suck and are a jolt to the system but always keep in mind that you will get another job and probably be better off for it.
Finally, and in case I didn't mention it, this post does not constitute legal advice - please GET A LAWYER TO REVIEW THE PACKAGE AND ANYTHING THAT YOU WILL SIGN !
Sigs are bad for your health.
The thing to remember is this...
Regardless of what that little contract you may sign says, you can't sign a piece of paper that takes away a legal right. Company has power, but guess what, the government trumps it. If they say you can sue, which they do, then you can sue. You can't sign away legal rights like that, even if you want to (of course there are certain exceptions to this)
In this case, I say sign the paper, get your money, and if you feel the need to sue in the future do so, because they can't legally take that right away from you
If you don't have any real advice to give -- and you didn't -- then why not just refrain from posting? Ask Slashdot does not seek to get the opinion of every reader -- only those that have something of use to say. Legal questions are of important to us all, and useful for people to understand before they are confronted with a problem -- with some legal knowlege you can act with more confidence and have some legal predictability in your life.
But instead there's always tons of people like yourself who give blanket non-advice, and attack the forum -- if you don't want to see legal advice on /., then just close your damn eyes and scroll past.
Not that your comment is better or worse than any of the common, equivalent comments... but it got tiring a long time ago.
The parent post seems to be correct, informative and authoritative. Or else a really clever troll.
Boy I'm not so sure about this - just consider it from the POV of prospective employers when they get his CV and the name seems familiar.
"Yeh, thats the guy who went ape-shit public on his last employer. Don't know who was right or wrong, but do we want a nut like that working for us?"
Guess what the answer will be? He'll have to leave town or the country, depending upon the size of the stink he manages to raise to get a job.
Also consider the ramifications if he loses all these lawsuits, and the company then asks for or lititgates for compensatory damages.
He could end up with a enormous judgement against him!
Just isn't worth it. Take the money, learn and move on.
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Posting a question like this in a public forum isn't going to give you a solid answer. I think most people who do so realize this. But it can give you a direction to consider, and it can help inform other people who have similar concerns now or in the future.