Your Rights Upon Termination of Employment
Since termination can happen to anyone, often without prior notice, it is very important to be prepared for a job change. Regularly update your resume, even if you don’t think you’ll need it soon. Keep your LinkedIn profile up to date, and stay in touch with your network. Have some potential references in your back pocket, so you won’t have to start from scratch if you lose your job.
Preparing yourself for all outcomes will allow for a smooth transition if you need to make any job changes.
Fortunately, employees who have been terminated have certain defined rights. In addition to the final paycheck, employees may have rights such as continued health insurance coverage, extended benefits, severance pay, and unemployment compensation. It’s important to know exactly what your rights are as an employee when you lose your job.
Employee Rights Resources
Contract Rights: Employees who have an individual contract with their employer or employees covered by a collective bargaining agreement are protected by the terms outlined in the contract in the event of termination.
Company Policy: When a company plans layoffs, they may have a severance plan in place. If so, severance pay may be provided in the case of termination. However, there is no federal law that requires companies to provide severance pay.
Legal Rights: Legal rights are those provided by federal or state laws. These include unemployment insurance, advance notice of facility closures or mass layoffs (depending on the size of the company), anti-discrimination laws, and anti-retaliation laws.
Getting Information About Your Rights: When you are unsure of your rights, the best place to start is the human resources department of your company. Even if they are in the process of terminating your employment, they can answer questions, inform you of benefits you may be entitled to at the company, and guide you through the departure process.
Where to Get Help in Case of Illegal Termination
If you feel that you have been discriminated against or not treated according to the law or company policy, you can seek help.
For example, the U.S. Department of Labor has information about every law governing employment and tips on where and how to file a complaint. Your state’s Department of Labor may also be able to assist you, depending on state law and circumstances.
Additionally, local bar associations often have a referral service and may have a hotline you can call to find an employment attorney. Remember that you will need to pay fees for the attorney’s services, although some may offer a free initial consultation.
Frequently Asked Questions (FAQs)
Is everyone eligible for unemployment benefits?
No. Federal and state governments provide unemployment benefits to workers who are laid off through no fault of their own. Check your state’s labor website for precise eligibility details, as these can vary.
What is wrongful termination?
Wrongful termination occurs when an employee is fired for illegal reasons or in a manner that violates their contract. You may be able to claim wrongful termination if you were fired for the following reasons: breach of contract, discrimination, refusing to commit an illegal act, violating company policy, reporting misconduct.
What happens to your 401(k) account when you are terminated?
When you leave your current employer, whether to move to a new job or due to termination, you have four basic options: keep the funds in the old employer’s plan, transfer the funds to a new employer’s plan, roll the funds over to a self-directed retirement account (known as a rollover IRA), or cash out the funds.
You choose
Many people are in one of the first two options, where you will be penalized by the IRS for taking distributions before age 59.5.
Conclusion
In the United States, an employer can terminate an employee’s job at any time for any reason or for no reason at all, except for discrimination. However, employees have specific rights after termination, such as receiving final pay, continued health insurance coverage, extended benefits, severance pay, and unemployment compensation. Employees who lose their jobs should know their rights exactly and seek help if they believe their employment was terminated unlawfully.
Source: https://www.thebalancemoney.com/employee-rights-when-your-job-is-terminated-2063384
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