The Corona epidemic has caused a
global slowdown. Many companies have started layoffs. In yesterday's news, news
of Fort Motor's layoffs came. The Ford Motor is going to lay off about 5% of
its American salaried workers. The company is taking this step as part of a
broader restructuring, to reduce the damage caused by the Corona crisis. Under
this, Ford is cutting 1,400 positions. In the last ten years, the company is
expecting the biggest loss this year.
If you already have to retire due to COVID-19
epidemic. You are neither financially nor emotionally prepared for that. If you
are in a company that is thinking about taking you out, it is more likely that
your income will not stop suddenly. If you get out of work age then you can get
another job, but if you are close to retirement, then it is very likely that
you will not get another job soon. In such a situation, you can take the
position of taking premature retirement. But due to the impact of the epidemic,
his company had been thinking of retrenchment for the last six months. Many
companies have started layoffs, and in most cases, 50 or older people are being
offered premature retirement. But if you are in a company that is thinking
about getting you out, it is more likely that your income will not stop suddenly.
Are you ready for that?
You will be paid a lump sum as a
severance package on behalf of the company or monthly for the next three or six
months, even if you have left work long before that. It is in your interest to
accept this reality and evaluate your deal.
Many companies set severance packages
based on the seniority of employees and their service to the job, which are
strict, and have little scope for bargaining. It is due to unprecedented
circumstances that companies declare severance policy. So, if such a proposal
comes in front of you, then do not oppose it, but seriously consider what you
are getting. You cannot fight an institution, so the suggestion is not to think
about challenging it legally.
Instead, keep an eye on what direct
or indirect financial benefits you are getting in the package. The monthly
salary you are being paid is a direct economic benefit. Whereas insurance or
pension, the facility is an indirect economic benefit. Generally, companies
provide experts or negotiators to explain such packages. Take advantage of this
and ask questions to pacify your curiosity about all the facts. For example, if
you are part of group life and health insurance provided by the company, find
out whether you will continue to be its beneficiary, and you will have to pay a
premium for it or it is part of your severance package.
With the help of your accountant,
understand the tax liability of this package and take those steps, so that you
have to pay less tax. The most important thing in this package is to see if
there is a provision for employment in the future, because in some companies
after the employees leave, to re-employ in the event of working in a rival
company or starting their work. There is a provision of embargo or time period
of a few months or years. This can affect your future employment prospects.
See if you can work as a consultant
in the company or not, this will help you find alternative employment.
Premature retirement is a warning for you to spend your savings very carefully.
Make sure that you and your wife have permanent health insurance.
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