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https://www.dol.gov/general/topic/wages/severancepay https://www.dol.gov/general/topic/wages/severancepay > Severance pay is often granted to employees upon te

by shagie 4y ago

https://www.dol.gov/general/topic/wages/severancepay https://www.dol.gov/general/topic/wages/severancepay > Severance pay is often granted to employees upon termination of employment. It is usually based on length of employment for which an employee is eligible upon termination. There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay. Severance pay is a matter of agreement between an employer and an employee (or the employee's representative). The Employee Benefits Security Administration (EBSA) may be able to assist an employee who did not receive severance benefits under their employer-sponsored plan. Please contact EBSA if you have any questions.

whatshisface 4y ago
Yes, some positions do not have severance, but if a company is trying to get around severance, then that must not be the case. Otherwise, why wouldn't they just have layoffs?
- shagie 4y ago
  A layoff is an elimination of a position often because of economic issues. After the layoff is done, that position is gone. Letting someone go because of performance doesn't remove the position and it can be filled again. If the company is realizing that there are people who are just coasting and not doing work and that they're not getting fired previously because it really is a pain and paperwork to fire someone and they want to let those low performers go but not eliminate the position, this is the way to go about it. Microsoft's old stack rank wasn't a layoff - it was a cold hearted "people who aren't preforming get let go." Stripe is recognizing that they've got people coasting and not contributing at the expected level. Somewhere an estimate was made that the lowest performing staff based on manager ratings aren't matching the actual performance. If someone is let go for performance (severance or no - that isn't part of the calculation), that position remains and can be filled again. If it was a layoff, then that position would be eliminated after the person was laid off.
- scarface74 4y ago
  Severance is voluntary unless they signed a contract up front. Legally, the company could flip a coin and give every other person severance. If they wanted to “get around” severance they just decide not to do it regardless.

by shagie 4y ago

whatshisface 4y ago

Yes, some positions do not have severance, but if a company is trying to get around severance, then that must not be the case. Otherwise, why wouldn't they just have layoffs?

shagie 4y ago
A layoff is an elimination of a position often because of economic issues. After the layoff is done, that position is gone. Letting someone go because of performance doesn't remove the position and it can be filled again. If the company is realizing that there are people who are just coasting and not doing work and that they're not getting fired previously because it really is a pain and paperwork to fire someone and they want to let those low performers go but not eliminate the position, this is the way to go about it. Microsoft's old stack rank wasn't a layoff - it was a cold hearted "people who aren't preforming get let go." Stripe is recognizing that they've got people coasting and not contributing at the expected level. Somewhere an estimate was made that the lowest performing staff based on manager ratings aren't matching the actual performance. If someone is let go for performance (severance or no - that isn't part of the calculation), that position remains and can be filled again. If it was a layoff, then that position would be eliminated after the person was laid off.
scarface74 4y ago
Severance is voluntary unless they signed a contract up front. Legally, the company could flip a coin and give every other person severance. If they wanted to “get around” severance they just decide not to do it regardless.