Is it ethical to layoff a consultant by using the counsel to leave mechanism over the standard redundancy process? Theres less notice period and no compensation for such a case. Furthermore the consultant was previously good standing or at least average. Do we have any legislation to protect us against such actions?

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None at all. You can be fired for no cause, as long as it isn’t related to a protected category

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Ethical? Debatable, I would say no although others may disagree because you voluntarily entered into at-will employment. Legal? Almost certainly.

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Agree. Think they do it to try to protect morale of the remaining people. Some see through it but many buy into it. Layoffs can be more random versus being able to say “this person had to go for X performance reason that you, remaining employee, have in your complete control.”

Sucks for the people who are told they lost their job for performance reasons.

Which firm?

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One of the mbb. So im wondering if anyone can enlighten me on what does the CTL entail in terms of notice/search period, rights to any severance package & whether the consultant has a choice to refuse leaving voluntarily and waits for layoff instead

Legislation to protect people from being laid off with no compensation? No. This may help.

https://www.dol.gov/general/topic/wages/severancepay

If your question is about laying off versus counseling out, then I’d view the counseling out period as equivalent to a lay off without losing your job title and keeping full pay until the end of the period. If you can find another position before you run out of time, you show no break in employment and don’t have anything to explain to future employers.. I don’t see it as unethical.

I think the question of ethics is in the aspect of having to layoff due to economy, but the firm raises the performance bar unreasonably high to trigger counsel to leave instead. By the way do u happen to know whats the proceedings of CTL and is there severance package particularly for the mbbs?

I continue to be shocked at how little even highly educated consultants are about labor in the US. My friend, welcome to America.

All states except Montana are "right to work", meaning you can legally quit at any time and you can legally be let go at any time without penalty. (If you have an employment contract that is a different story)

Being fired with cause vs without cause (i.e. you did something bad and are being fired as a result) only impacts eligibility for unemployment. If you're fired with cause you can't collect unemployment.

No company is obligated to give you advanced notice, severance, or help. You can legally be fired at any time for any reason (or no reason) except for those defined as discriminatory such as age, race, sex, familial status, veteran status, etc. Also, it's extremely hard to prove being fired for this reasons.

Summary: no you have no legal recourse and can be fired without severance for any reason.

I do not think it is unethical (at least in our business) to do that because for the most part consultants are well paid, well educated and have the tools to land on their feet.

The reason why most companies pay severance is so that people do not come back and sue them, or disclose something embarrassing about the firm or its clients, and to ensure their reputations as employers is not tarnished. I am sure some of this money lost to severance is recouped when people land jobs during salary continuation and the firm's unemployment insurance rates are unaffected.

From what I’ve heard there’s no severance per say, there’s a notice period though. So basically you get X days to find a new gig or you’re out which is similar to them giving you severance of X weeks and you’re gone that day. There’s no expectation for you to contribute to a project at this point. This was big 4, don’t know what the number of days was.

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