How to Respond when You Are Being Laid Off

As companies continue to look for ways to provide mediocre service at the highest possible price to customers and lowest possible cost to themselves more and more American workers are being called into that dreaded meeting with the lay-off managers and human resource hatchet men as their jobs are handed over to less demanding workers in India, Mexico, and various third-world labor forces.

Many workers fear that day, but they fail to realize that there are opportunities for them in the situation if they are prepared for it. Preparing and coaching yourself for a lay-off is not a self-fulfilling prophecy or a pessimistic thing to do. It is simply prudent and pragmatic to prepare for an event that you hope never happens, like having an emergency plan for your family in the event of a house fire or other disaster.

Companies often offer severance packages to employees who are being terminated in a reduction in force plan. They do this not out of benevolence or gratitude for your previous service. They do it to avoid higher costs in litigation and to bind you into agreements to not compete with them or expose internal company practices or other information you might otherwise legally make public. In short, it is a binding contract that buys your cooperation and pledge to not damage the company in any way.

The typical lay off occurrence involves a meeting with the employee and a manager reciting some very general statements. These statements are scripted to deliver the bad news to the employee without providing any detailed reasons for the termination. The script is also designed to quickly convince the employee to sign an agreement which includes severance pay and possible benefit extensions, along with very specific conditions for the former employer to adhere to.

Most people (more than 70% per recent studies) sign the severance agreement before the meeting concludes.

BAD IDEA!

Severance packages are almost always negotiable. Consider the package initially presented to you as an opening offer, not a take it or leave ultimatum; regardless of whether or not it is presented that way. The company will typically design their package and canned speech to convince you that there are no alternatives.

You should quietly and professionally give them indications that you know there ARE alternatives. Those alternatives can include:

• A higher cash severance payment
• Longer extensions on benefits
• Waivers of previous non-compete contract statements and agreements
• Legal action

Knowing that most other folks take the initial severance offer without protest or negotiation is a powerful advantage to you. Because of that the company is able to pay out higher severance to those smart enough to negotiate, and the company is often happy to do so to avoid costly litigation and worries about the competition gaining advantages or bad press from the knowledge provided by disgruntled former employees.

The key thing to remember during this emotional event is: DON'T GET EMOTIONAL.

Displays of anger, remorse, or (in some rare cases) absolute joy over the termination of employment will not benefit you. Demands for fairness or begging and groveling will not reverse the decision. It is sad to part company with co-workers or to lose your income, but try to focus on the fact that this is a new opportunity and you are going to get something to help you fill the gap while you search for a new job that may be even better.

Numerous cases have occurred where employees were terminated and re-hired by the same company within days or weeks. The chance for re-hire is dramatically reduced if you cuss out or threaten the folks who are simply the messenger delivering bad news. Additionally, unprofessional behavior and criminal threats or assaults will quickly turn a negotiated lay-off into a termination for cause (firing) in which you receive no severance at all and a possible trip to jail to boot.

Do not threaten legal action. If you receive undue pressure to sign the severance agreement immediately, it is perfectly reasonable and advisable to respond by telling them you'd like to review it with your own legal counsel first. That generally sends the message that legal action is a consideration, but it doesn't come across as a blatant law-suit threat.

And seriously, it is a good idea to take the agreement to an employment or labor attorney for advice if you can afford a modest consultation fee, especially if there are any questions at all surrounding possible illegal reasons you ended up on the RIF (reduction in force) list, such as age, disability, or whistle blowing potential.

In summary, being laid off is an event that can be leveraged as an opportunity, not just a traumatic ending to your current employment.