Three Important Steps Every Employee Should Take when Facing a Possible Layoff
California unemployment has not subsided as many companies continue to still struggle to recover from the downturn of the economy. The current unemployment rate in California is over 12%. A recent survey held that 63% of small businesses will not be hiring new employees.
If you are facing a possible layoff or downsizing consider taking the following important three steps.
1. Secure all performance evaluations, letters of reference, and letters of commendation mentioning landmark projects you worked on, expense reductions you have achieved for your company, or revenue goals you have met or exceeded. In other words, “toot your own horn.” Gathering this information will help you in three ways. First, it will remind you of your own achievements and value, second if you work with your manager to gather this information, it will remind your manager of the value you bring to the organization, and last, this information will be invaluable in interview should the need arise, should you be laid off.
2. If the company is laying off employees and you have been selected for layoff, consider approaching management and offering to take a pay reduction or alternatively to move to another department even if a reduction in pay will ensue. While, this may not “feel good” nevertheless, it may behoove you to maintain full time employment and take a pay reduction instead of facing the ominous task of hunting for a job in this marketplace.
3. If you are facing layoff, ask for a severance package. Have you ever heard the phrase, “ask and you shall receive?” Certainly, the opposite is true. If you do not ask, certainly you will not receive. Now the question is how much to ask for. You do not want to be unreasonable and you should consider the financial condition of the company. Considering factors such as this, will allow you the greatest chance for acceptance. Also, the company may already have a policy on severance pay based on years employed. Check your employee handbook to determine if this is the case.
If your company elects to provide you with severance pay, you should expect to sign a release that may prohibit you from pursing certain types of labor related claims. It is important to have an experienced California labor law attorney review this release before signing it and most of these agreements state that you have been given the chance to “have an attorney review this agreement”.
California labor law can be complex and before you decide to accept the severance pay and sign anything it is very important to understand what you may be giving up. The cost of having an attorney take a look at the paperwork may even be done as a courtesy or at very little cost.
Keep in mind that your employer is not just being kind to you. Your company most likely wants something in return and that something could be worth tens or even hundreds of thousands of dollars. We have seen many uninformed employees sign away very valuable rights for pennies on the dollar.
Labor law is complex; if you have any questions regarding your employment it is recommended that you contact a California labor law attorney who can help you understand your rights and in many cases will review your situation without charge.
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Photo Credit: Shutterstock Antonio-Guillem