Things to do financially before getting laid off

[Muncher]

If you have company shares/stock options, dump them! If your company is laying off people, they aren't going to do too well, and you don't want to be trying to sell your shares while you're not working and the price has dropped.

Go to the doctor, optometrist, dentist and any other personal care services you've been delaying while working so hard. Also you should start looking for insurance if you have any group benefits so you can transfer and not lose coverage.

Don't lock your savings in GICs; keep flexible.
Also when the .... hits the fan, cut expenses like crazy except your phones 'cos you need that to find another job. You won't feel like watching 300 TV stations if it happens.

Good luck and remember, there's a better employer out there for you!

[nolookingca]

If you know you're getting laid off, you might as well use up the rest of your vacation days for the year.

[konfusion666]

Not sure how many females work in your company, but my suggestion is to see if you can get the names & numbers of as many hot female managers, co-workers, women with alot of influence and or secretarys and take tem out for a few drinks. You never know you might be abe to get one of them to put in a good word for you.

If you get to sleep with any of the managers that'd be a bonus as well, nothing wrong with sleeping with the boss to advance your career.
May as well get laid before you get laid-off.

man, what a sad post... but also pretty funny too

[charliebrown]

Definitely max out your benefits like medical/dental

Had an interesting chat w/ a fellow last yr when the 6/49 jackpot was around $50 mil

basically, his plan (if he won) was to show up to work and do ABSOLUTELY nothing and see how long it'll take before getting fired

I think you're on the same boat...see if u can pickup part-time work elsewhere; dont quit...just wait out for the severance

[Camilo]

I disagree.
It would be better to get paid for these days. He's going to need the money...

If you know you're getting laid off, you might as well use up the rest of your vacation days for the year.

[don242]

If you know you're getting laid off, you might as well use up the rest of your vacation days for the year.

You should get paid for any unused vaction time so don't use them unless you really need time off.

[mart242]

I disagree.
It would be better to get paid for these days. He's going to need the money...

Yup. Take all your sick days (if they don't pay them at the end) to look for work and interviews and do not take a single vacation day, they'll pay them with your severance pay.

[deal_lurker]

When someone gets laid off is severance something that is manditory (by law) for payment to the former employee by the company? If so does anyone know what happens if a company goes bankrupt... do they liquidate everything and pay off employee serverance first?

Or is paying severance an optional thing that is a goodwill gesture by the company... you know in case the company needs the employee again.

I have always wondered about these things.

With a 10 year severance, EI will indeed be useless to you, you'll likely get more than 50 weeks (the max) worth of EI payments.

[don242]

When someone gets laid off is severance something that is manditory (by law) for payment to the former employee by the company? If so does anyone know what happens if a company goes bankrupt... do they liquidate everything and pay off employee serverance first?

Or is paying severance an optional thing that is a goodwill gesture by the company... you know in case the company needs the employee again.

I have always wondered about these things.

Severance pay depends on some conditions and is up to the company to provide it in certain conditions.

http://www.labour.gov.on.ca/english/...rmination.html

Termination pay is required if no notice is given.

As for a company going bankrupt, even if a severance was prosmised you are not likely to get it.

[Bullseye]

Even if a company goes bankrupt, they are still obligated to pay severance, employees are first in line when liquidating. They also changed the laws a few years back (maybe for Ontario only?), making directors of the company PERSONALLY responsible for this.

I actually went though exactly this a few years ago.

[Aske001]

When someone gets laid off is severance something that is manditory (by law) for payment to the former employee by the company? If so does anyone know what happens if a company goes bankrupt... do they liquidate everything and pay off employee serverance first?

Or is paying severance an optional thing that is a goodwill gesture by the company... you know in case the company needs the employee again.

I have always wondered about these things.

There's a big difference between mandatory severance pay in lieu of notice, and customary severance amounts.

The mandatory severance pay may be as little as one pay period (e.g., 2 weeks), depending on your province. And it's in lieu of notice, i.e., if they boot your ass out the door 5 minutes after they tell you you're laid off. They have the option to tell you ahead of time and let you work out the minimum notice period - it's just that most companies want you out of there right away before you can do any damage.

The customary amount is a matter of common law, i.e., what a judge would likely award based on similar cases if you sued and the case went to court. Companies usually get legal advice on the customary severance amount for each individual situation, and they usually try to offer a little less than that up front. You can probably negotiate it up a little if you try, but not by a lot. Get your own legal advice if you're not sure. You can often get a brief consulation with a lawyer free of charge in this situation.

For example, you might expect about 1 month of severance pay per year of employment. You might get more if you are older, in a specialized or senior position, harder to re-employ, have a family to support, etc.. You might get more if you gave up another good job or moved a long way to take this one based on the company's promise. You should also expect health care benefits and cash equivalent for any other type of benefits or routine compensation for the entire severance period.

On the other hand you might get less if the company is in real financial difficulty, or if there is clear evidence that you are underperforming or incapable of the work, if you lied about your qualifications, or if you are guilty of some misconduct. You will probably get less if you are young, can easily find another job in your field, have no family to support etc.

[Bullseye]

Aske101 - great post, that info all jives with my knowledge of this as well.

[konfusion666]

They also changed the laws a few years back (maybe for Ontario only?), making directors of the company PERSONALLY responsible for this.

so Incorporating wouldn't protect you?

[Bullseye]

so Incorporating wouldn't protect you?

Not if you're a director of the corporation, no. In many inc companies, the owners or principles are also directors.

The labour ministry takes owed employee wages very seriously, hard to get out of paying them, and that includes severance.

[ebizimage]

If you know you're getting laid off, you might as well use up the rest of your vacation days for the year.

Probably not, coz they will give you cash back for vacation.