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Separation Agreement 'no rehire' clause

#1
I'm in California. My company decided to move their home office from California to another state. I was offered a position there but declined as I did not want to relocate. I was offered a severance package of 3 months and an agreement to stay on during the transition for an agreed upon time. I'm an employee in very good standing.

During this time, my end date was again extended and I again agreed to stay.

I was asked to extend my employment once again (third time) and was now offered an incentive to do so. Also, I was offered a work from home position for my last few months. I accepted the offer and assumed that I was on the original severance package. However, two months later, I received a new separation agreement for the latest extension. In this new agreement, I am moved out of the regular severance agreement to a 'separation' agreement in which there is a 'no rehire' clause and I can no longer apply for a position at this company in the future.

Had I known this up front, I would have taken my original severance and walked away. Now, I must sign this agreement in order to collect my severance and I just feel like I've been swindled.

Any advice?
 

Zigner

Senior Member
#2
I'm in California. My company decided to move their home office from California to another state. I was offered a position there but declined as I did not want to relocate. I was offered a severance package of 3 months and an agreement to stay on during the transition for an agreed upon time. I'm an employee in very good standing.

During this time, my end date was again extended and I again agreed to stay.

I was asked to extend my employment once again (third time) and was now offered an incentive to do so. Also, I was offered a work from home position for my last few months. I accepted the offer and assumed that I was on the original severance package. However, two months later, I received a new separation agreement for the latest extension. In this new agreement, I am moved out of the regular severance agreement to a 'separation' agreement in which there is a 'no rehire' clause and I can no longer apply for a position at this company in the future.

Had I known this up front, I would have taken my original severance and walked away. Now, I must sign this agreement in order to collect my severance and I just feel like I've been swindled.

Any advice?
Sign or don't sign, based on your own decision. You can't force the company to consider you as eligible for rehire, nor is a severance package of any sort mandated by law. You should also apply for unemployment as soon as you are no longer working for them.
 
#3
First you might want to talk to whomever you deal with at the company as to why they added the no rehire status. But if that goes nowhere take the money. There was no guarantee that you would have been hired back anyway.
 

xylene

Senior Member
#4
There is nothing illegal about a company having a policy to not rehire any discharged employee. Telling you seems quite straightforward and honest. Have being jerked around for almost a year, I'm unsure why you'd want to work there again.
 

xylene

Senior Member
#5
Also - there is nothing in law that would stop them from rehiring you if you signed this.

Companies often rehire old employees when they are desperate, even people who left under less than satisfactory conditions and who where flagged 'ineligible for rehire'
 

xylene

Senior Member
#6
Lastly this clause is most likely just boilerplate to make sure that you cannot claim any accrued seniority benefits, standing, wages etc in the unlikely event they consider you for a position.
 
#7
I just feel like I've been swindled.
Depending on the money involved, you'd have felt more swindled when you got cheated out your UI. The employer would have been able to claim there was continuing work, that you turned it down, and then you'd have most likely been adjudicated as a quit under "leaving early."

www.edd.ca.gov/UIBDG/Voluntary_Quit_VQ_135.htm#LeavingPriortoEffectiveTime

Also, the employer offered you a job that was too far away, and you didn't want it. What's the likelihood you're ever going to want to work there again?
 

HRZ

Senior Member
#8
I agree your ego may be bruised....but as a pocketbook issue ...smile and sign it . you are giving up nothing of value ..at least as posted.

UNless the prior severance agreement has a clear fixed duration or end date ...YOu remains an At will employee and employer can change the deal going forward or merely kiss you good bye .

However if the company offered you a specific bonus to stay aboard and you met the conditions ..that bonus very likely vested ...your post is a bit unclear ...and other folks are more up on ca issues.

If you turn down work..that can be a voluntary quit..and bad step if UC is important