May 2005

Career Corner
Know Your Rights—On the Way out the Door

Slow down, take a breath: Getting fired can happen to anyone.

There are a multiplicity of factors that contribute to layoffs, downsizing, and outright termination—reorganization, reshuffling, reconfiguration of departments; elimination of a division because of profit losses; differences of opinion between employees and management; or personality conflicts, which generally is the most common reason for firing. Whatever, the end result is that you are out the door, an everyday phenomenon. Some reports indicate that at least 250,000 American workers are illegally or unjustly fired each year.

Until recently, employees had few options upon receiving a "pink slip" because of the employment-at-will doctrine, which was generally applied throughout the United States. (Utah supports the rights of employers over employees as an “at-will” state.) Under this rule of law, employers hired workers at will and were free to fire them with or without cause or notice. Beginning in the 1960s, however, courts and legislatures began handing down rulings and enacting legislation to safeguard the rights of unionized employees. Congress passed laws specifically pertaining to occupational health and safety, civil rights, and freedom to contest unsafe working conditions.

While the subject is vast and rife with legal issues requiring much study, there are a few simple steps you can take if you get fired:

First, don't beat yourself up.

Second, before beginning a job search, you should consider where you stand from a legal perspective. Was your firing legitimate or could it be considered wrongful termination? Are you eligible for unemployment benefits? (If you were fired for misconduct you may not be eligible, but don't presume that is the case; check with your state unemployment office. In Utah, it is the Department of Workforce Services, which has branch offices throughout the state.)

Third, in the meantime, you can file for unemployment, register with Workforce Serves, and start receiving job leads. Go to www.careers.utah.gov.

Severance Pay
No law requires an employer to provide severance pay to terminated or laid-off employees. Nevertheless, many employers offer one or two months' salary to employees who are forced to leave their jobs. An employer may be legally obligated to give you severance pay if you were promised it, as evidenced by:

• a written contract stating that severance will be paid
• a promise, in an employee handbook, of severance pay
• a long history of the company's paying severance to other employees in your position, or
• an oral promise to pay you severance—although you may run into difficulties proving the promise existed.

A severance package can include more than just money. If you are in a position to negotiate a package (perhaps your termination is questionable and your employer wants to keep you from going to court), consider asking for other earned benefits:

Insurance benefits: Health insurance continuation laws require the employee to pay the cost of continued coverage. However, there is nothing in these laws that prevents your employer from picking up the tab as part of a severance package.

Uncontested unemployment compensation: Sometimes employers will try to contest a terminated worker’s unemployment claim. Ask your employer to agree not to do so; it will make getting benefits a lot easier.

Outplacement services: Outplacement firms help employees find new jobs. They may offer counseling, job skills training, tips on résumé- and cover letter-writing and leads on potential jobs. In addition, they may offer a place where you can use a computer, receive faxes, and have a receptionist answer the phone. Many employers are now paying for these types of services as part of a severance plan.

References: If you are leaving your job under less than pleasant circumstances, you might work with your employer to come up with a mutually agreeable letter of reference.

Final Paycheck: Depending on where you live, many state laws specify when departing employees must be given their final paycheck. Often the outcome depends on whether you are leaving because you quit or because you were fired or laid off. Some of these laws also specify whether your unused vacation pay must be included. To find out about your state's law, contact your state labor department.

Health Insurance: A 1986 federal lawthe Consolidated Omnibus Budget Reconciliation Act (COBRA)—and similar state laws provide for health insurance continuation when an employee quits, is laid off or is fired for any reason other than gross misconduct. To learn more about COBRA, refer to the U.S. Department of Labor ‘s Web site at http://www.dol.gov.

Start Anew with Professional Resources
When you are ready to commence your active job search, contact Alumni Career Services and never look back. Alumni Career Services and the Alumni Association are here for you during this painful and sometimes awkward transition from job to jobless. We can provide you with our professional career services to ease your transition into your next terrific job.

Need more information? Contact: Julie Swaner at (801) 585-5036.



U-News & Views © 2005 - An online publication
by the University of Utah Alumni Association
Questions? Concerns? Contact Linda Marion, editor (801-587-7837)
or Marcia Dibble, assistant editor (801-581-6996)