I hear the company provides 1 week per year severance during a RIF. What does that mean?
For example, if I worked there for 26 years, does that mean if I get laid off during a RIF I can collect my salary, insurance, 401k match, for 26 weeks?
Asking for a friend. ;-)
The "benefits of a RIF" are for the benefit of the company. When the current company was created in 2019, one of their stated goals was to achieve a place of Diversity, Equity and Inclusion. And their sated goals were: 50% of employees will be female, 30% will be people of color or anyone "marginalized by systemic racism".
If you do the math, it means Asian and Caucasian males will make up less that 20% of the workforce. That's a big problem unless you correct it with a series of moves like:
#1. Hiring from the aforementioned criteria and paying them more than veteran employees tasked with training them: COMPLETE.
#2. Give the new hires more paid time off than long term employees: COMPLETE.
#3. Imply cash incentives to hiring managers who diversify their departments: COMPLETE.
#4. Deploy a strategic RIF in the name of streamlining the company, then re-hire only people from the aforementioned criteria: IN PROCESS.
Yeah… not gonna lie, I was terminated and didn’t get a severance. Reason given was breaking the Code of Conduct. It was an honest mistake on my part and nothing unethical. I was in Quality/CM.
Once you've been targeted for layoff, human resources will scour your history with the company. If you've ever had any disciplinary actions, or used too much time off, or refused to work overtime too many times, or had bad breath, or bad clothes, you will be terminated for "cause" and not be given any severance of any kind. They will look all the way back until they find something. Trust me.
If they ask you to take a voluntary layoff, and offer a severance, take it. If you fight the layoff, they will fire you.
2 weeks minimum. 1 year, 2 weeks.
so if I’ve only been here a year I won’t get any severance?
L3Harris Technologies, Inc.'s severance pay plan provides benefits to eligible employees who are involuntarily terminated. The plan includes:
Non-executive levels
One week of base pay for each year of credited service, with a minimum of two weeks and a maximum of 52 weeks
Executive levels
One times base pay plus one times annual bonus target, up to a maximum of 52 weeks
Other benefits
COBRA continuation at subsidized active employee rates, outplacement services, and waiver and release
26 weeks lump sum minus 20% taxes. 26 weeks insurance at current rate, employee only. No 401k, so no match.
2 the lump sum will be taxed heavily.
good luck 🤞
Yes for salary only, as severance, and you have to sign an agreement that you will not file a lawsuit against the company.
It’s a sweet deal if you were secretly planning on retiring anyway and you are of Medicare age or have insurance through a spouse.
Note the severance is only for if your layoff was involuntary and not-for-cause.
If you break any part of company policy during a RIF period, when managers are pressured to meet reduction quotas, no matter how seemingly trivial you can get terminated for cause instead. Work from home when you aren’t supposed to, send out an inappropriate email, mischarge time by a few hours, those sorts of things. This happened to a Program Manager at our segment (IMS Camden NJ).
Lump sum payout of 26 wks worth of salary. Other benefits get cut off.