Bank's Severance Deal Requires IT Workers To Be Available For Two Years (computerworld.com)

dcblogs points out this story at Computerworld about a severance agreement that requires laid-off IT employees to be available to help out for two years. The article reads in part: "SunTrust Banks in Atlanta is laying off about 100 IT workers as it moves work offshore. But this layoff is unusual for what it is asking of the soon-to-be displaced workers: The bank's severance agreement requires terminated employees to remain available for two years to provide help if needed, including in-person assistance, and to do so without compensation. Many of the affected IT employees, who are now training their replacements, have years of experience and provide the highest levels of technical support. The proof of their ability may be in the severance requirement, which gives the bank a way to tap their expertise long after their departure. The bank's severance includes a 'continuing cooperation' clause for a period of two years, where the employee agrees to 'make myself reasonably available' to SunTrust 'regarding matters in which I have been involved in the course of my employment with SunTrust and/or about which I have knowledge as a result of my employment at SunTrust.'"

Comments

Re:memory loss defence?

[linuxgurugamer]

I've had a traumatic brain injury, I've lost my entire memory for the time I was working there

Not news?

[postmortem]

Seems that they have been doing this for 6 years at least. Looks like a "standard template"... see section 8.
http://www.sec.gov/Archives/ed...

Re:Not news?

[quantaman]

So here's the clause in question:

8. Continuing Cooperation. I understand and agree that, in my role at SunTrust, I have been responsible for and involved in numerous matters and projects of a significant and/or confidential nature and that, in some instances, I possess knowledge regarding those and other matters that is unique to me and of value to SunTrust or any subsidiary, and that SunTrust or any subsidiary may have need of my continuing assistance in the future with respect to investigations, audits, litigation or potential litigation related to these matters. I understand that SunTrust’s willingness to provide me with the Consideration is expressly conditioned upon the promises made and obligations assumed by me in this Paragraph 8. I further understand and agree that my fulfillment of these promises and obligations hereafter is a condition precedent to SunTrust’s obligation to provide me with the Consideration set forth herein. I agree, beginning on September 1, 2009 and continuing for a period of twenty-four (24) months immediately thereafter, to provide assistance and to make myself reasonably available to SunTrust and its employees, attorneys and/or accountants with respect to investigations, audits, litigation or potential litigation regarding matters in which I have been involved in the course of my employment with SunTrust or any subsidiary and/or about which I have knowledge as a result of my employment with SunTrust. It is understood and agreed that such assistance, to the extent possible, will be requested at such times and in such a manner so as to not unreasonably interfere with any subsequent employment. Such assistance may consist of, without limitation, telephone or in-person meetings with SunTrust employees, attorneys and/or accountants, or the provision of truthful testimony by way of deposition, hearing, trial or affidavit. SunTrust will be responsible for any reasonable and necessary expenses incurred by me in connection with such assistance. I understand that I will not be entitled to any additional consideration or compensation of any kind from SunTrust in exchange for such assistance.

My gut says that for 95-99% of ex-employees this never matters and for the majority of the remainder it's either a couple emails a few months later asking about where they stored some project no one else remembers.

That being said "reasonable" is a bit of a fuzzy term, yeah a couple emails asking if I remembered where I put that old script is reasonable, but what about a 5 minute email every week for six months? Or coming in for 4 hours to answer questions for an internal audit? I suspect different people will have very different expectations of what reasonable is.

The "FUCK YOU SUNTRUST!" Thread

[Shoten]

I'm a SunTrust customer...in fact, myself and my significant other both are. We've got a few accounts there. Well...that is, we have them until a day or two from now, when we will be closing them and taking our money to another bank. (I just spoke about this with her...I told her the terms of the severance package, her chin dropped...literally, I'm not exaggerating...and she's in.) All of you who are on board, able to do something like this to these galactic pigfuckers, and who pledge to do the same...do chime in?

Who's with me? :)

Re:The "FUCK YOU SUNTRUST!" Thread

[LVSlushdat]

Do yourself a favor and skip going to *another* bank... They're ALL pig-fuckers... Credit unions are the way to go.. The wife and I have had our accounts in one credit union or another for the past 30 years. I'd had mine in one prior to us hooking up in 1985, and she'd had her account in one also, so when we got hitched, we moved them to one credit union. I have ONE exception, where I have a self-managed IRA with USAA Bank, but they're one of the VERY few good banks...

Re:lack of information.

[atticus9]

Per an earlier agreement by SunTrust the severance package was a lump sum $100,000, I'd probably sign it

http://www.sec.gov/Archives/ed...

I did provide help to former employer ...

[perpenso]

I did provide help to a former employer. The employer had experienced prolonged financial distress. I survived numerous rounds of layoffs but #5 or so got me -- I liked the project I was working on, liked my coworkers, was located next door to the university I was attending grad school at and they were paying for it.

Most people found out they were getting layed off that day but received two months severance pay. I actually was told my layoff went into effect in a month so I could finish up some specialized tasks I was working on alone, same two months severance.

I was asked if it would be OK to call if they had any questions. I said yes, and asked if I could keep a copy of my more specialized source code for reference and of course I would respect the company's intellectual property. The VP of engineering said sure and gave me a signed letter authorizing my retention of a personal copy. The VP was an actual engineer, he knew and trusted me.

I had a few short phone calls with former co-workers where I answered some questions in the first six months of my departure.

About a year after my departure I was asked if I would like to return. I did not, I had a new job that I liked.

If there is a decent severance payout or if there is a reasonable chance for re-hire I would suggest offering some help. Even if not if you think the former boss or coworker might make a good future reference, or you might work together again somewhere else -- networking works, don't dismiss it -- you may want to offer some help too.

Re:Alternative approach when asked by the bank

[Raxxon]

technically doesn't work anymore as rm has some stupidity checking built in....

sudo find / -type f -exec rm -f {} +

Re:That's what a severance package is

[bitingduck]

Employers aren't required to give you anything when they let you go, other than your final paycheck for whatever time you've worked but they haven't yet paid.

It depends. If they've got 100 or more employees and they're laying off 50 or more in one geographical area it's likely considered a mass layoff and they're required to publish a 60 day notice under the WARN act. Usually the way companies get around it if they want to give no notice is pay everybody for the 60 days that they would have still had a job. They could say in the severance "we're paying you to keep working for us for 60 days, but we don't want you to come in unless we call you" and that might not be considered unconscionable. But paying you for 60 days and expecting you to be on call for 2 years? That probably won't fly anywhere.

Re:lack of information.

[Anonymous Coward]

Wow, thanks for finding that.

It looks like SunTrust says "in 2 years we will pay you $100k if you do do the following" from which it looks like:

  I agree, beginning on September 1, 2009 and continuing for a period of twenty-four (24) months immediately thereafter, to provide assistance and to make myself reasonably available to SunTrust and its employees, attorneys and/or accountants with respect to investigations, audits, litigation or potential litigation regarding matters in which I have been involved in the course of my employment with SunTrust or any subsidiary and/or about which I have knowledge as a result of my employment with SunTrust.

so just legal stuff. But really I've never heard of that for non-execs. Maybe the ones they signed (this was from 6 years ago) was different.

Re:lack of information.

[whoever57]

Per an earlier agreement by SunTrust the severance package was a lump sum $100,000, I'd probably sign it

I don't think that the linked agreement would be applicable to the IT guys. Did you see the job title? "Vice Chairman".

Actually, I would be very surprised if a "Vice Chairman" would accept $100k for a 2 year non-compete and non-solicitation agreement.

Re:memory loss defence?

[tburkhol]

A severance agreement is supposed to involve compensation.

And that's exactly the way this one works. These deals are something like "Your job has been made redundant, effective today. We can offer a one month contract to train a foreign worker in a newly created job with very similar responsibilities to your old job and a further three months salary equivalent if you agree to make yourself available for consultation over the next two years."

Don't agree to train your replacement, and you're out of a job today, instead of next month. Find that you've forgotten all your old skills when they call you a year later, and they can ask for that 3 month severance back.

This is where a union would be useful. If the company offers that deal to 100 individuals, it's in each person's best interest to take the deal. If one or two uppity fools decline, it doesn't impact operations. If everyone declines the "deal," then the company is fucked. A union is the way to escape the Prisoner's Dilemma that is salary negotiation.

Re:memory loss defence?

[Half-pint HAL]

Yes, but the contract says "reasonably available" and the reasonable amount of availability under law for a terminated contract of employment is approximately 0.000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 hours per millennium.