Quitting and severance?

32 Comments

1. Erica MitchellApril 3,2023 at 1:07PM UTC

   I'm not sure if you'd receive a severance as you are quitting. I know they do in other circumstances. Wish I could be of more assistance.

2. AnonymousApril 3,2023 at 1:55PM UTC

   Thanks Erica, appreciate your thoughts

3. AnonymousApril 3,2023 at 1:11PM UTC

   That would definitely be a business decision for that company as quitting and getting a severance is not a normal practice. They don't go hand in hand and shouldn't. The havoc it would cause as a regular practice. Maybe they would consider paying out pto and perhaps allow your 'partnership' to stay or to be paid out. Asking for severance when you're quitting is not a practice.

4. AnonymousApril 3,2023 at 1:54PM UTC

   Thanks for your thoughts, appreciate them. I like the pto and partnership stay/paid out angle. Kind of hoping for something while being realistic. tysm

5. AnonymousApril 3,2023 at 1:52PM UTC

   Since you are a partner, severance would be spelled out there if there is a partnership agreement or contract. Otherwise, I would approach the partners and explain your situation. You likely don't have much PTO accrued or unused since you probably used that when you were sick. I had a similar problem, and when I chose to retire, they were able to give me my entire allotment of vacation and paid out both sick and the year's "personal" time (which they typically only will pay you what you have accrued). It worked out to about two month's pay.

6. AnonymousApril 3,2023 at 2:24PM UTC

   Thank you for responding, this makes sense. Unfortunately, there's not much detail in my contract, let's just say I learned a lot during my time there. Moving on, smarter and better ;)

7. AnonymousApril 3,2023 at 3:11PM UTC

   I would approach the partners, then, and ask what they could offer. What's the worst that could happen? (Rhetorical question, of course).

8. AnonymousApril 4,2023 at 12:38AM UTC

   Very fair points, thank you

9. AnonymousApril 3,2023 at 3:15PM UTC

   "Severance" should be negotiated as a Separation Package in your situation and using your health as the reason.

   Given your contribution and in lieu of a cash payout (which given the company's poor performance last year is highly unlikely) there might be an agreement that you remain on the payroll with full benefits for 6-9 months and are available to answer questions and provide high level advice during the transition amounting to under 15 hours per month. Or something like that. You may want to discuss your strategy with an employment attorney for some pointers to ensure you get everything covered.

   The only concern I would have is the fact that the company is not very healthy so the leadership may be reluctant to consider being too generous outside what is spelled out in your partner agreement.

   Take care of your health and good luck

10. AnonymousApril 3,2023 at 3:51PM UTC

    Thank you for your reply, this is interesting, especially the separation package idea and verbiage. The company hit its 6-month projection a few days ago, but I understand a lot can happen during the rest of the year.

    I'll be reaching out to an attorney soon, tysm

11. AnonymousApril 3,2023 at 6:19PM UTC

    I've not seen it specifically as what you note above. What I have seen is more of a mutual agreement: "this isn't working out" kind of thing. You're miserable, they are miserable. Your misery is affecting your work. You agree to amicably part ways. I don't know how well that would work for you.

12. AnonymousApril 5,2023 at 12:46PM UTC

    This is a potential path too lol, and thanks for responding.

13. AnonymousApril 5,2023 at 12:25PM UTC

    Yes, I have negotiated 4-6 months in experiences leaving organizations. The first thing to do is schedule time with your HR contact and give the facts

    1) What you’ve delivered in 10 years with the company

    2) Outside factors that could impact the time it takes you to find a new role

    3) Reasons you consider it “time to go” in a positive light for you and the company

    4) The key asks you have (benefit continuation, severance salary, vested 401k, etc). Make sure to include a softball you’re willing to give on if needed.

    Many people go through this process and come out in a mutually beneficial way. Hope it goes well!

14. AnonymousApril 5,2023 at 12:44PM UTC

    Excellent advice, thank you. Now to work on the softball lol. May I ask, have you left any smaller companies in this way? I think we're at about 24 people, don't really trust HR.

15. AnonymousApril 5,2023 at 10:28PM UTC

    My experience was in a larger company. However human empathy is everywhere. Just be kind and lead with honest candor. Even HR people started their careers looking to help people. Trust they can help as much as possible.

16. AnonymousApril 5,2023 at 12:29PM UTC

    I was in a similar situation a few years ago. We reached a mutual agreement to part ways, and I was given an eight-week severance package. There was also an issue where I could have filed labor infractions against the company because of the treatment I received around my illness and some related workplace bullying. That gave me added negotiating power. I did have to sign documentation that I would not take any such action. Additionally, I negotiated re-employment support services into my package to help me land somewhere else when I was ready.

    Have any documentation about the treatment you've received, the hours you've worked while being "part time" and even performance reviews and impact you've had on the company ready to share when you go into such conversations. Good luck and remember your health comes first. Take care of you.

17. AnonymousApril 5,2023 at 12:42PM UTC

    Thank you, I'm glad you were able to move on, gives me hope to hear. Oddly enough, I've never had a performance review at this place lol. I've been diligent about recording my time and keeping my calendar up to date. Lots to consider, thank you.

18. Ellen Smith FaganApril 5,2023 at 12:41PM UTC

    most importantly - GET MORE POSITIVE about severance. Stop the good guy / bad guy stuff and be wise and wonderful instead, realizing that most job things time out...they have a beginning, middle, and end. When the job has done, it does not always feel good at first and that makes fights start. All of a sudden, the stresses you were happy to deal with seem like war, etc.....YOU HELPED BEGIN AND DEVELOP THAT COMPANY you say....then EXULT in that and let it feed you for future success in new work.

    Think and praise those who worked great teamplay with you over the. years and treat. yourself to health and beauty and exercise and rest, as you prepare for new work or retirement - whatever. But do NOT stay negative over a normal change your life has brought to you.

    God bless you - I can say this because I have been there and now at "Upper midlife" I am so proud that left most jobs on good terms - it's solid gold to my personhood now.

    SEVERANCE is a great idea, if, as you say, you helped get that company going and stayed strong for them so longi - your contribution was special and has VALUE - respect your SELF and restore full strength from your health issue last year.

    GOOGLE IT...only you can know the exact tone of the kind of severance you should enjoy as you leave. Remember that you will be setting a precedent if they have not awarded a severance to anyone else in the past. Online study about this topic will help you.

    As for the climate at work becoming toxic toward you - that is often the case when a job thing has timed out and no one realizes it - things collapse into squabbls and pettiness. PULL BACK and find your poise and do not let them ruin your last days with the firm you loved enough to help launch and to stay with for then years....

    Make a happy ending for YOU and for the company.

19. AnonymousApril 6,2023 at 6:13PM UTC

    Ellen, I love your reply so much, so many good tips and a productive approach. It's a great reminder of how getting mired in the negative can slant one's point of view. Thanks for the reframe and encouragement.

20. Rebecca Gale-GonzalezApril 5,2023 at 1:34PM UTC

    Maybe you should be honest with them and tell them that the toxic environment is causing burnout and is adversely affecting your health. Let them know you really want to see them succeed, but somethings got to change. The idea that you take time off to recover from illness is valid and they should respect that and try to give you that time. If not then broach the separation and severance. You helped to grow the business, you shouldn't walk away with nothing.

21. AnonymousApril 6,2023 at 6:15PM UTC

    Thanks Rebecca, this really sums up how I feel and is a great approach. I want to exit gracefully but I've given a lot to the company and it would feel insufficient to walk away with little.

22. Titra HamiltonApril 5,2023 at 2:32PM UTC

    I totally feel you about wanting to leave a toxic work environment. I have been there, done that, got laid off and was relieved. I did receive a severance package as did everyone who was laid off. If I recall correctly, you get severance if you are laid off. You do not get severance if you resign. Also, with no partnership or profit-sharing agreement, it feels like you have little legal leverage to ask for anything on your way out, other than the company preserving goodwill and the relationship with you. If you cannot influence/change the environment for the better, it may be time for a graceful exit.

23. AnonymousApril 5,2023 at 3:56PM UTC

    If you can prove some of the toxicity (even better if you’ve ever brought any of the issues up in the past) I’d use this as leverage. I was mistreated at a tech start up (smallish company, pretty Sr position, managing people) and I called them out on their bs for disrupting me while I was supposed to be out on fmla and said this is just icing on the cake of bs I’ve dealt with the whole time working here and asked for a mutual separation package. Because they knew they were wrong and that I could hire a lawyer, they paid out a healthy severance and I’d bet you could do something similar. Good luck!

24. Victoria AbramsApril 5,2023 at 5:09PM UTC

    Severance is discretionary and is not dictated by DOL. Most of the time it is given if you are terminated. It would be up to the company. FMLA or Disability is your best option.

25. Cindy GrossApril 5,2023 at 5:58PM UTC

    Try asking for equity / ownership first. Then negotiate a separation package (severance is only for layoffs - HR may be a stickler about the difference). Check out HRUprise if you want to get advice or coaching from an HR expert. #BefriendingDragons

26. Beth SlateApril 5,2023 at 6:21PM UTC

    I am curious if you are in the legal industry. As a law firm organizational development consultant I am very familiar with non-equity partners and compensation, exits, etc. I might have something to add to the conversation if this is so.

27. AnonymousApril 6,2023 at 6:19PM UTC

    I am not, am in the creative agency industry. But thank you!

28. AnonymousApril 5,2023 at 6:33PM UTC

    My company offers severance to voluntary resignations. They had this policy in place when I joined, and as an HR professional it initially did not make sense to me. However, now I can see its value. Many people, especially in our ongoing pandemic state, need more space. Folks are afraid to quit their jobs if they only get their vacation time as a buffer. Offering them a severance gives folks a little more time to take some time off and rest, and right now most people need more time to refresh.

    In this case, I would advise you to approach it as a mutual separation. If things are going well they may be getting a sense of your unhappiness. Consulting with an attorney is a good idea, but I am not sure unless you have cause for complaint how they can help you in this situation. I would not advise leading with a strongly worded legal letter as that may put your company on their back heels and less likely to deal.

    Talk to a person in leadership or HR who you know has influence and you have a strong relationship with and let them know you feel it is time for you and the company to part ways. It isn't your preference, but the writing seems to be on the wall - or however you would frame your current circumstances that make you staying untenable. See how that lands, then in follow up let them know you would like to discuss a severance agreement. I am not sure how much severance you are hoping for, but I would start by asking for 3 months and hope to get 4 - 6wks. (the last paragraph about how to approach the business I might change if I knew more about your specific circumstances so take it as uninformed high level guidance. Stick to what you know about the business and its people and operate accordingly)

    Good luck!

29. AnonymousApril 6,2023 at 6:23PM UTC

    Thanks for your response, unfortunately, I don't think there's anyone at the company I can speak with. The 2 people above me are owners and the HR person is very connected to them of course. But I'll think about that. Thanks again

30. AnonymousApril 5,2023 at 8:33PM UTC

    I’m not all too versed here, however I’m thinking you should get a lawyer to give you directions and any paper you’re going to sign when you exit.

    it’s not a charity organization. They know exactly what they have, what they’re doing. Protect yourself. Good luck.

31. Liz MilneApril 6,2023 at 3:09AM UTC

    What does the partnership paperwork say?

32. Bradford McCormickApril 6,2023 at 12:20PM UTC

    You have already receied great advice here: Do nothing until you consult a lawyer. Good luck!