:mad:
I was relocated by my company (expenses paid) on May 9th 2006 for the sole purpose of working with the said company. I had no other motivation in moving except work, I also expressed being relocated as soon as possible. I was working under a performance plan for 90 days; my salary would increase dramatically after the 90 days. About 40 days into the opening, I was asked to step down from my position, and offered a position along side the staff that I managed. I was not being asked to step-down for performance reasons, as was told this explicitly.

My boss, has never been a good leader, and was constantly using threats against myself and staff to "motivate" performance, as well as other unprofessional acts of behavior. (documented) I, however, continued to perform as a professional, and ignored his abrasive nature and met it with positive feedback and strategy. (documented)

I felt I had no choice but to accept the lower position, since I had no other options... I then proposed "new" position for myself; this was accepted by the CEO. After 30 days in my new position with no guidance, job description, or support in the role, the company decided to dissolve the job.

The company would like my resignation in exchange for a pathetic severance package. They state in writing they will not contest unemployment if I resign.
And of course I sign a release to waive all claims against the company. I have not signed the package, nor do I intend too, or waive my rights in any way...

Questions:
1) I can not claim unemployment if I resign, so why do they want a resignation for a job that they are dissolving...

2) This sounds like bribe all over it...sign this for severance, and unemployment, which they can not legally offer...and "the company won't contest unemployment any claim for unemployment based on my resignation."

3) If the job was dissolved, I should be able to claim unemployment without accepting or signing the release waiver?

4) Why not just fire me?

5) What would the Attorney General Think about this company's intent to commit unemployment fraud?


Any advice...?

1. You are correct that generally speaking unemployment is not extended under voluntary separations. However mitigating circumstances often play a part in UC's decision process. So even if you "resign", there is a potential that you could still qualify for benefits under these circumstances.

2. It's not uncommon for severance packages to include legal documents that must be signed in order to receive the proceeds. The wording that you mention seems to be standard language. I wouldn't necessarily call this a bribe. They are offering you "free" money. The company is under no obligation to offer severance (except if employed under an enforceable employment contract which states otherwise).

3. I'd agree that by dissolving the position, you'd qualify for unemployment. However if they offered you another position in the firm, you'd have a different challenge when it comes to UC.

4. They could just fire you. That's ultimately their decision. The company may just think you are not the right fit for them. As such, they've decided to put together the severance package which should cover you for a short period of time while you look for work elsewhere. If you decline the standing offer, the company is free to terminate employment. Most likely, you'd qualify for UC but you would not receive the severance. I'm not sure why people are suspicious when severance is offered. IMHO it's the right thing to do when the worker just isn't a good fit.

5. I really doubt this would be considered unemployment fraud. UC determinations are rarely clear cut. Many factors go into the determination process. Just because a voluntary separation is a disqualifying event for one person does not mean that the same is true under different circumstances. It's the specifics that matter.

Thanks for the prompt reply!!

I do understand the purpose for asking an employee to sign a release when offering severance, the company wants protection against legal action by the former employee...

This severance package was offered 24hours prior to a very specific non-complete agreement was to be signed by myself...following an attorney's recommendation; I was not planning on signing the agreement. My company knew I would not be signing, therefore would be obligated to terminate me for refusal (as the company stated). The non-compete agreement was also a waiver of rights to pursue litigation against the employer. (which is standard) All of my expertise lies in the industry of the said employer, and the agreement states I would be restricted in working in that industry for 24 months in the Continental USA, if I break any part of the non compete I am responsible for all legal fees. It also states if I work in an industry that could complete potentially this is a violation etc...I know they can not restrict my employment if it interferes with sustaining a living.

I find it curious the organization would,

1)offer the severance package at all, just wait for me to “not” sign the non-compete then fire me…

2) Make it explicitly clear they were not terminating me, just “dissolving the job”…

3) Why would I sign any of my rights away for a joke of a severance, when I am already entitled to unemployment with “job dissolution?”

My theory is, they know they have screwed me they don’t want fire me because I have not signed away the right to sue them…There has never been a question in my performance, and I have documentation to support it… they know they are screwed because I have documentation and witnesses to harassment from my boss toward myself and staff.