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About Timmy Chou
Expertise
I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".

 
   

You are here:  Experts > Business > Corporate Law > Arbitration/Mediation > Severance pay after recent firing

Arbitration/Mediation - Severance pay after recent firing


Expert: Timmy Chou - 4/7/2009

Question
I was asked to resign after 15yrs working for a small company as a manager their reason was I sent personal fedex package with is customary with all employees whenever the bill comes we simply pay.I was told to write a letter of resignation in order to receive unemployment I do believe I should get severance please give me your thoughts. I would like to send them a letter would you send me a brief outline on how to go about this.
Sincerely

Answer
Thank you for your question!

As I always note to questioners, mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is very typical and can be considered a "classic" HR dispute presentation.  I am not a lawyer and cannot give you legal advice, nor mediate this with you alone but I can respond to your question from my business consulting experience.

Note that this may have legal factors and you may wish to consult a labor attorney.

I often tell people that it may be useful to consider that right and wrong are not always the most useful places to begin in dealing with these sorts of problems.  For most large organizations there is only expedient and inexpedient.  Also, there is a cost to exacting justice and the costs can be quite high.  Remember that your person-hood and your work are not even remotely related and that the most successful people at work are often the least successful with others since they have often become successful on the bodies of those they have slain.

You are dealing with authority figures or owners who are only interested in the path of least resistance in terms of how they manage the business.  I'm guessing they could care less about you so don't put too much investment in your position.  You were terminated for business reasons and now you must create a business reason to deal fairly with you.

Please begin by documenting a very careful chronology of events as they have occurred.  Names, dates and locations.  Put things in writing at this point as you have done.  Be sure to document as much of your excellent work history as well, including incidents of praise or recognition. In many states you can be fired for just about any reason without a problem.  These are known as "right to work" states.  However, and this is vital to your case, you cannot be treated differently than other workers nor can your contract be violated.  You state that your "violation" was common practice.  You must try to get evidence of as many examples of the practice as you can, and try to also get examples of the practice being "known" by managers or owners.  Naturally you want to show that others are NOT being treated the way you have been treated.

If are employed under a Union CBA or other set of HR rules and procedures, you must get copies of these documents to determine if procedures were followed in terms of rules you are accused of breaking, confrontational rules, grievance procedures, appeal procedures, etc.  You must note any company or supervisor violations of these rules as well as any failure to follow these rules in your case.

Utilize Union resources and advocates to assist you.  At this point you must remain calm and poised.  Be prepared with evidence and facts.  Use any other advocacy resources you may have.  Be prepared to write letters and file complaints with the state and federal labor offices.  You can file with these office for free and they will fight your case for you, but you must have your facts ready for them.

Your company must see that you are not going away, you are going to use every lever you have, you are going to tell everyone and proclaim their practices far and wide, and that it will cost a lot more to deal with all the problems you will cause them for their practices and then they will make a business decision and deal fairly with you.  Be professional and show the company that it is more risky to terminate you under questionable circumstances than to merely leave you alone.   

If you want to send a letter, I would advise only a letter that demands your job back at this point.  You want to preserve ALL of your rights if possible.   

You do NOT have to write a letter of resignation to receive unemployment, in fact IF YOU RESIGN VOLUNTARILY YOU ARE NOT ELIGIBLE to receive unemployment compensation.  DO NOT WRITE THIS LETTER, but document the person who told you to do this, and be prepared to refer them to the Dept of Labor and to the Unemployment Office.  

You need help.  Please see your State Labor Office.

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:
  Confidential, no public record
  Limited exchange of documentation, information
  Quick, don't have to wait for a court date
  Arbitrators have expertise in the subject matter and are trained in conflict resolution
  Cheaper than litigation
  Preserves business relationships

Negatives of Arbitration

  It's a compromise, no 100% winner
  Complex arbitration can be costly
  If not satisfied, may litigate the arbitration procedure
  Poor results with an unskilled arbitrator
  Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

  Neutral mediator can objectively suggest alternatives not considered before
  Parties are directly engaged in negotiating the settlement
  Can be quicker than litigation
  Less costly than litigation
  Preserves business relationships
  85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

  may not reach a binding decision
  unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

  a clear winner and loser
  uses a prescribed set of procedures
  more predictable outcomes
  is final

Negatives of Litigation:

  waiting for court dates can do more harm
  usually more expensive than mediation and arbitration
  part of the public record

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