Role terminated due to financial challenges - no written confirmation?

Role terminated due to financial challenges - no written confirmation?

i started with this startup back in April. As the fifth employee, 3rd f/t hire. 2 months ago red flags started showing about the company’s lack of stability. The ceo called me 2 days ago telling me they couldn’t afford me anymore, no other severance etc. confirmed nothing to do with my work etc.

i have not yet received a formal letter of termination, confirming my final paycheck etc. is this normal? When should I expect something in writing? I thought as a California business they had to provide something in writing? Should I send a message confirming the conversation with the CEO?

thanks for any insight on this!

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11 Comments

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  1. JJ

    With 5 employees they may not have all of the processes in place. At this point I’d say receiving a final check would be a win.

  2. Anonymous

    Oh wow, yikes!

    I'm so sorry that you're experiencing this season of hardship. I would definitely investigate California labor laws, especially, around grounds of termination. I'm not familiar with how it works out that way. Document everything so you have record of your convo with CEO. I'd also revisit your new hire packet (if you have one), to see if there's any employment policy info. Also, because it is a startup make sure you know which state this startup is legally registered in as this might explain why they've (CEO) has been able to circumvent the situation. If the startup is headquartered in an at-will state, then they're not obligated to give you notice in writing nor give you any compensation, benefits, etc., unless you have something in writing that violates their policy/contract where it is stated that you are owed said compensation/benefits, etc. If you learn that you are an at-will employee, then you have same right to sever ties/terminate employment with a company with or without notice, also with the understanding you would be forfeiting any benefits/compensation (after a certain, varies based on your company's policy).

    If you can at least get a final check, that would be the best case scenario in this situation, and then cut ties.

    Wishing you all the best and I hope things work out in your favor!

  3. Anonymous

    They are a startup so they are a mess.

    I would follow up with the CEO to get written confirmation.

  4. Anonymous

    Yes send a message to the CEO to get your final termination letter and any other benefits you are entitled to. Unfortunately this is how is goes when you work for startup’s. However, they still need to have proper termination protocols. Good luck!

  5. Crystal Howell

    Contact the CEO/HR and request a termination/layoff package. Check with your payroll company should know something. Always good to get with established companies, start ups some do make it, you have to thoroughly research all companies now. Yahoo finance, BBB.org, check them out. Sorry this happened.

  6. Anonymous

    1) I am very sorry for the news. You are going to get thru this, have faith. Take some time to process and digest what happened. When you are able to, start applying for a new job aggressively and persistently. If your interest is longevity, try to aim for mid-size to large stable companies. I read in a recent statistic that 50% of small biz fail by year 5 and 70% by year 10.

    2) Find every HR document you ever received from this company and signed for your job. Look to see if it has any jargon about termination. Also, do you have an HR representative? If so, reach out to them to find out the process involved of receiving your final paycheck. Depending on the company they may have to process some final things before issuing your final paycheck. When you reach out each time call and more importantly, put your specific questions in writing. For ex:

    a) When can you expect to get your final paycheck and will it also account for unused leave?

    b) Can you get an official letter from them on company letterhead that confirms that you are let go due to reduction in force?

    c) Ask HR to highlight or point you to the HR reference that addresses the termination process.

    3) Put your request in writing and select (read receipt). For every week that goes by that they do not respond, reach out again 2 more times (cc'ing the CEO, since he reached out to you with the news). This serves as evidence that you inquired, and they have not responded.

    4) If you think you are owed money, calculate how much you think are owed and consider the pay period cycle.

    5) If your company is unresponsive, try to contact Attorneys from Small Business Associations (SBAs) in your state to see if you can ask some legal questions pro-bono from either a labor attorney or even a small business attorney. Although a small biz attorney represents small biz, they should still be able to answer questions about what rules/regulations applies to small businesses in terms of terminating an employee.

    6) If you have not done so already, save every time sheet by taking screenshots or as a PDF to show trends of time previously worked for each previous payperiod. Also save each electronic paycheck that showed a break down of hours and paid, should you had to prove what you were accustomed to being paid each period prior to termination.

    7)Depending how much you are owed should play a role as to whether to invest anytime in this to where you want to seek legal action. It takes, time, money and energy and time away from either applying for new jobs or time off from work from a new job in the future if leave is needed for court.

  7. Barb Hansen

    From someone whose worked for years in startup land, here is what I would do:

    Email the CEO repeating what they told you over the phone, so you have it in writing that you were terminating and that you just didn't show up for work.

    List out any outstanding wages you are owed and the date you expect to be paid. In the email, ask the CEO to confirm that you'll be paid on that date.

    Ask the CEO for their personal email so you can follow up in case the corporate emails are shut down (this is a small startup, they may decide to shutter the virtual doors including shutting down the corporate email)

    If you owe the company a laptop (or any other hardware), ask the CEO to send you a prepaid FedEx box so you can return the laptop.

    Bonus Suggestion:

    If you like working with this CEO, then leave the door open to work with them again. Startups come and go, but good startup CEOs can fire up a new company quickly. Early in my startup career, I worked with the same CEO, CTO and lead developer through 5 startups over 10 years.

  8. Anonymous

    Agreed! This startup CEO should also connect you with other opportunities or with others who can assist you in finding your next. Ask if there is trust in your professional relationship.

  9. Anonymous

    That doesn't sound normal. I would reach out and find out when you are going to get something in writing. I assume you will need this to file for unemployment. I'm sorry you're going through this and I hope it all works out for you.

  10. Ayian

    Unemployment contacts the company independently to confirm layoffs and any compensation. Written notice is not a requirement.

  11. Valerie Rieger

    Unfortunately, this sounds normal for a start up. They often don't have the HR infrastructure to handle these situations correctly. Definitely confirm the conversation via email with the CEO.

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