No Rehire in Severance Agreement

[BrianBuchanan]

What is the name of your state?Texas

My position was eliminated in March of this year due to a reduction in force. I had been with the company almost 10 years. I was 54 . At the time of my leaving , I signed a severance agreement in which there was a clause that stated I waived my rights for reinstatement or rehire. I admit I did not see that clause at the time of my signing. I left the company on good terms with a good work record and credits along with good letter of recommendation from the Vice President of the company in which there is no mention of termination or eligibility for rehire at my old company.

Since my leaving, there have been several positions posted that I feel I am qualified to apply for and did so. Unfortunately, they tell me the No-Rehire clause prevents them from considering me for re-employment. When talking with my HR rep. at the company, he could not give me a reason why such a clause was included in my severance agreement knowing my good work record and accomplishments.

I would like to know if I have any legal recourse? I feel the N0-rehire" clause in my agreement is a negative especially if other potential employers are being told I am not eligible for rehire. Does this not restrict my ability to get employment? Thanks

 

[BelizeBreeze]

I would like to know if I have any legal recourse?

Not one that you would win. The no-rehire is a standard clause in separation agreements when downsizing is anticipated and one that, unless ONLY those who were let go and offered the clause are over 40 (or all middle-aged) and no younger employees were given separation packages with the clause included, perfectly legal.

 

[BrianBuchanan]

I reside in Texas.

Thank you for your input. I am still wondering however,why such a clause is included in severance agreements with good employees. I can see them not wanting to hire someone that had a poor work history, but what is to be gained in cases such as mine? They have almost 10 years of training invested in me and one would think if a suitable job position opened up, they would want to fill it with someone they know and someone who would require little, if any, additional training.

You mentioned this is standard procedure in severance agreements if downsizing is anticipated and perfectly legal unless I could prove they included it in my agreement ( age 54) and not a younger employee let go. How would I be able to determine that has happened?

Would it be possible for me to persuade them to waive this "no-rehire" clause and hire me for a new position if handled delicately? I am at a loss as to what to do now. Thank you for your counsel.

 

[Beth3]

Such clauses are SOP in severance agreements/waivers. It doesn't mean the company WON'T rehire you, it means they have no obligation to rehire you. It's not a big deal. If they have a job opening in the future that you're interested in, you're free to apply. If they want to consider you for the position, they can.