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Call Center Employees Sold to New Co?

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CallCenterTech

Junior Member
What is the name of your state?Arizona
Our call center and department of this Major Corp is going to be transfered to a new company, our employer is turning us over to the new company but leasing its customers to the new company. We will be severed from the original company under? layoff? termination? not really sure what it will be called when it happens next month, but as layoffs have occurred over the last 3 1/2 years, we as the skeleton crew were all expecting some kind of severance pkg which everyone else prior to us have recieved, but are told we are not going to be offered anything except a job with the new potential employer, either accept the position or dont.end of story.
Is this legal, should the W.A.R.N. act be applied to this in any way?
The onnly current additional things I see wrong at this beginning stage is that some people will loose discounts and are in contracts for the full amount after the deal and others will loose vesting on 401k's, and the mentioned severance pkg we all thought we would get. 30 days notice has been given, not 60. And more than 50 people will be affected.
 


Beth3

Senior Member
Is this legal, Yes.

should the W.A.R.N. act be applied to this in any way? No. We don't even have to go through the exercise to determine of WARN applies because apparently you are all going to be offered jobs.

The onnly current additional things I see wrong at this beginning stage is that some people will loose discounts and are in contracts for the full amount after the deal What contracts are you talking about?

and others will loose vesting on 401k's Maybe not. It's quite possible the new employer will continue the current 401(k) Plan or if not, will very likely recognize years of service for vesting purposes in their Plan.

and the mentioned severance pkg we all thought we would get. Very few employers will offer the option to resign with severance when jobs are being offered.

30 days notice has been given, not 60. And more than 50 people will be affected. WARN doesn't apply.
 

cbg

I'm a Northern Girl
If you are being offered jobs with the new company WARN does not apply. You are not being termed; you are not being laid off; you are being retained by the new management. You will still be employed. If you choose not to remain with the new company, that is a voluntary quit for which you are not entitled to anything except your final pay and possibly any accrued vacation, under WARN or any other law.

Severance, which is not required by law in any case, is offered to employees who have lost their job through no fault of their own. It is not generally offered to employees who remain on the job under the new managment, and it is not generally offered to employees who could have remained employed and choose not to. Nor do I see any logical reason why it should be offered under either situation.

If your expectation is that you will both be employed by the new company AND receive severance from the outgoing management, your expectation is unrealistic.
 

CallCenterTech

Junior Member
RE: What contracts are you talking about?

The ones where employees signed contracts for services provided by my employer at an extreem discounted rate, so far the extreem discounted rate is going away and the binding contract will remain, and the price will be the regular fee which is kinda high.


Thank you all for your feedback.
 

Beth3

Senior Member
If the entity they signed the contract with (the soon-to-be former employer) no longer exists, then the services contract is almost certainly void. As to the "binding contract," without having any idea what the terms are and whether it specifies it's still binding if a successor employer enters the picture, it's impossible to comment. If anyone wants to know whether the contract you refer to is still in force once the sale is completed, they'll need to show it to an attorney.
 

CallCenterTech

Junior Member
Re:

The company that is getting rid of us will still be in business, they are only getting rid of one dept- division. SO the services that the employees getting a discount through will still be in business as well.
For example- Employees get a 85% discount for their cable tv- when they are no longer employees the 85% goes away, but their 2 year contract remains, which will then go to full price, knowing that this wouldve happened they may not have signed up with the origianl price and so far, one executive said that they wont be able to get out of their contract.
 

cbg

I'm a Northern Girl
If you think your rights under the contract are being violated, show it to an attorney. We can't interpret a contract we have not read.

BTW, an employer cannot be expected to know in advance everything that's going to happen over the length of your employment.
 

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