|
For
Immediate Release
Former
Employers
and Potential Employers: What Should Your Legal Agreement Be?
Spell Out
Reference Details in Your Separation Agreement
DETROIT (Sept.
20, 2011) - Job separation: most people cringe at the very
idea, although most of us have experienced it. And to be fair, it's
not always a bad thing. Oftentimes, it occurs for a positive reason;
the advancement of a career or a movement to “greener pastures.”
Unfortunately, there
is also the circumstance where a separation is initiated by the
employer; a lay-off, firing or downsizing. And let's be honest,
these are generally unpleasant for the suddenly-out-of-work employee.
However, some employer-initiated separations come with a “separation
agreement” (sometimes referred to as Termination Agreement,
Severance Agreement or Separation Agreement and General Release),
which specifies the terms of your termination
and severance package. And depending on the circumstances of the
separation, these packages can be quite generous. So, when handled
correctly, this agreement can be a useful and positive tool for the
employee.
Don't miss the key
phrase here: when handled correctly. Employees should
be aware that these separation documents are drawn up by the
employer, and generally favor them; they are also a contract in which
the employee relinquishes their legal rights. As such, they need to
be reviewed very carefully.
To protect yourself,
you must be very careful with the wording of various documents. Have
the key details spelled out legally, by an attorney, and make sure
you understand the ramifications of the agreement. This is of
particular importance if you sued your former employer and are now
negotiating a separation package.(Note: In most states, you will not
want to use the word “severance” or “severance agreement.”
Severance is a term used by both federal and state governments to
denote a specific type of payment. It may adversely impact your tax,
unemployment and other benefits. A labor and employment attorney can
advise you on this subject.)
One key thing that
is often overlooked in the negotiation of these packages is the rules
about how this (now former) employer will react to a request from a
potential employer for reference
information. This is an important issue; don't
let it fall through the cracks!
So, what should
the legal agreement with your former company say about its
obligations to provide references to potential employers? (Need
specific legal advice and direction here? Allison
& Taylor can arrange for an attorney to write a
custom clause for your particular situation.)
Here are some
tips on what a former employer should NOT be allowed to do or say
when asked for reference information:
1. Make a
reference to legal action. “Hold on a moment, let me get the
legal file to see what I am allowed to say.” There should be NO
reference whatsoever that the former employee may have sued - new
companies do not want to hire someone who sues former employers.
2. Nothing at
all. They MUST return a reference call. After all, what does it
say when a former company, boss or the HR department does not return
a reference call? It's a very strong hint to a potential employer
that there were issues or problems with the employee.
3. Have a bad
attitude, or any other type of inflection when interviewed. No
negative sound bites. (See some of the unbelievable things former
employers have said here.)
4. Offer any
other opinions whatsoever. When providing a reference, they need
to stick to the facts.
5. Offer any type
of personal conversations within the industry. “Off-the-record”
conversations which malign a former employee must be taboo as it can
be considered “blackballing.”
Here are some
tips on what employers/reference providers SHOULD be saying and doing
per a legal agreement.
1. They should,
in a polite and friendly way, verify title, dates of employment and
salary for prospective employer. This verifies the information
that is required on most employment applications.
2. They should
courteously decline to provide any additional information. When
asked other questions, they need to politely say, “Our corporate
policy does not allow me to give any additional information.”
Taking the time to
clarify these reference requirements in your separation package may
make a huge difference in your ability to get a job in the future.
Also, don't just assume that the company reference policy will be
followed; in many cases, it is not. And a legal agreement on
reference conduct can mean the difference between a lukewarm or
negative reference, and one that is positive
and professional.
###
About Allison &
Taylor:
Allison
& Taylor and its principals have been in the
business of checking references for corporations and individuals
since 1984. Allison & Taylor is headquartered in Rochester, Mich.
For further details on services and procedures please visit
http://www.allisontaylor.com/.
Allison &
Taylor -- Find
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Media
Contact:
Jeff Shane
JeffShane@AllisonTaylor.com
800-
651-2470 USA toll-free
+1-248-672-4200 direct
dial
AllisonTaylor.com
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