Layoff Unemployment Letter of Reference Severance Cobra Outplacement Services Serverance
Hopefully, an employer will notify their employees that their jobs are being eliminated in a professional manner by either in person, or if they are out of their area, by telephone or web cam.
Unfortunately, there has been more than one employee out there who has found out they were losing their job by an email. Many companies recognize that lay-offs are trying periods not only for the impacted employees but for their managers as well. Realizing this, these companies usually make every attempt to treat the impacted employees with dignity and respect and offer them the following in the United States:
Severance Letter
This is a formal written notice advising an employee that their position has been eliminated. It also explains the status of their benefits and provides a summary of their severance pay, assuming they are eligible for one. Before an employer honors the agreement, the employee must sign and return a Severance Agreement and Release. The agreement basically informs the individual that their right to make a claim against the company will be waived and they will be eligible for benefits, if they sign and return the letter within a certain time frame. Failure to do so and the agreement will then become null and void.
Severance Pay
Severance pay is in most cases one week of pay for every year of service worked and is usually not paid out in a lump sum. It is issued according to the number of weeks eligible for continued salary and the severance pay period. Unfortunately, not all companies offer severance.
Benefits
The Severance letter should also inform the employee what happens to their benefits, including vacation or paid time off (PTO), and their rights to continue their medical and dental benefits under COBRA.
Unemployment
Employers should advise the employee they eligible to apply and that they need to contact the agency regarding the process.
Outplacement Services
Some companies may refer their employees to an outside firm that will assist them with writing their resume and with their external job search. Once again, not all employers offer this benefit.
Letter of Reference
Some employers may provide a letter of recommendation. If they don't, there is no harm in asking for one.
Overall, losing ones job can be extremely stressful. It is recommended that any individual impacted by a layoff who has any questions, they should contact their company's Human Resources (HR) Department. If HR fails to answer their questions or if the individual has a strong reason to believe that they are being discriminated against, they may then want to consult with an attorney.
