Severence terms included in letter of offer - contestable or not?
- Thread starter nottyboi
- Start date
I don't quite follow. You mean, terms in case of future severance are spelled out in an offer of employment?
In any offer, you can counter-offer. If you don't like those terms, strike or change them or speak to your lawyer for advice.
The company's policy on severance was on the letter of offer I signed. After the fact, (upon termination) can these clauses be successfully challenged in court or or is it a waste of time/money?
On the face of it, if you signed the offer with those terms therein, you agreed to them as a condition of your employment but speak to an employment lawyer.
How long have you been there? Maybe you can re-negotiate or counsel may advise that you signed it under duress and without legal advice, so that they can be contested.
The dismissal was a restructuring, they are not claiming any misbehavior or preformance related issue. I did not work there long, the delta between what they are offering me and what I think is fair is at most about 21K take 50% off for tax.. we are down to 11.5 in pocket.. maybe I will just ask them to give me another month and call it..
Some issues to consider, but certainly not exclusive are:
1) Were you effectively offered the job and did you effectively accept the job before you signed the offer letter. In some cases a person has gone through interviews, received a telephone call telling them they are hired, accepted the job and then shown up on the first day and been presented with a policy manual to sign. In cases such as this the courts have held that the contract was formed when the person first accepted the job and the employer cannot unilaterally change the contract by imposing conditions after the job was first accepted;
2) do the severance conditions comply with the minimum provisions of the Employment Standards Act - I don't think there are any employers left who are stupid enough to try to get away with less than the ESA provides but if there are the entire severance clause would be void;
Best of luck
Write an email to an employment lawyer like Howard Levitt's firm.
They will work on contingency of 33% of any amount they recover over and above their original offer.
They will work on contingency of 33% of any amount they recover over and above their original offer.
Probably not worth contesting over $21K and/or if you had short-term employment. If you were there a significant period of time you'd have an argument that the terms of severance should change due to the length of your employment.
The bottom line is (and the hurdle you'll have to get over) is that you agreed to the severance terms upfront. Buyer's remorse isn't a valid legal argument.
The bottom line is (and the hurdle you'll have to get over) is that you agreed to the severance terms upfront. Buyer's remorse isn't a valid legal argument.
That's the difference between what he got and what he thinks he should get that's fair (the 'delta').
Do you really think 21K is that much money? How do you afford SPs? 30K is based on 3 months income. Last place I worked I got over 40K in severance after 2 years. Anyhoo, when I run it though the tax calculator.. since I only get to keep half-minus legals and hassle, plus the fact that I DID sign. I am just gonna ask for a bit more and leave it at that.. not really worth expending my energy so the Feds can make 12K over what will be a 12-18 month battle.
Good thinking.
Rule of thumb is one month for every year? (Throw in another month and one should get no dispute whatsoever). So your estimate of what's fair isn't unreasonable. Since the income you imply is at an executive level, 3 months severance doesn't seem out of whack especially if you're older in this job market.
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For severance, 21K is HUGE.
Most professionals can expect about 1 week severance per year of service. I know plenty of folks who barely got 20-30K severance after 10 years employment (at a rate of about $100k/year).
But if you're getting paid $120/year, you can easily afford legal advice and don't need to come to TERB for "free" advice.
As someone who has "paid" for legal advice. I will advise you that free advice is often better, and does not carry a certain "bias". Lawyers are also salesmen. They often encourage a course of action that benefits them. So I am always suspect. I cannot say they have served me very well in the past. As for your standard of 1 week/year. I dunno where you get that from, perhaps you are talking professional barista. I appreciate your perspective though.. thanks for reminding me how lucky I am to have had the career I have had..even though I may be taking a "vacation". The last 2 years at this place I have worked much harder and faced more stress for far less money then I have made in the past.. I guess maybe the the sign of the times. But I often forget how hard some people have to work for much less money.
If you are expecting only one week per year of service you are not a professional. One month is fair. Stingy places may try to cut it to two weeks per year.
Severance fights are trench warfare, everybody loses but the winner loses less. Your goal is to start a legal battle that is inexpensive for you but costly for them so that they make an economic decision to pay out even if they think they could win.
Almost certainly it is worth having a lawyer crafting a nasty letter then suggesting negotiations and trying to bargain for a better deal.
They won't want to go to court either.
Severance fights are trench warfare, everybody loses but the winner loses less. Your goal is to start a legal battle that is inexpensive for you but costly for them so that they make an economic decision to pay out even if they think they could win.
Almost certainly it is worth having a lawyer crafting a nasty letter then suggesting negotiations and trying to bargain for a better deal.
They won't want to go to court either.
Yes they lose big when they go to court, you can also go to small claims court for up to 25K. I am going to do a "nice ask" for one month more. Having spoken to a few people, the courts to tend to uphold these conditions. Chances are since they are a well funded company teeming with lawyers they will know this. Best to try and appeal to their sense of sympathy and fair play before going to war.
Their sense of fair play? When you have demonstrated that you have none? Wow.
Good luck.
I thought the ROT was one month per year for long tenures and professionals/key employees, while one week per year was for the opposite situations?
