Updated handbook changed all references to be “severance” vs “salary continuation” and says that we should reference the benefits book for details. However, I can’t find any details about what it is. Am I missing it?
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I’m confused as to how long the Notice Period is under the new plan. It doesn’t says 60 days or a specific number of days. So how many days is the notice period? Is it simply up to the line of business at the time of layoff???
Another difference to consider.
Previously, you'd get placed on displacement leave at the end of the notice period (60 days). The length of displacement leave was calculated as 2 weeks for each full year of service. During this displacement leave period, you'd continue to get medical at WF group policy rates (same as non-displaced FTEs). Also during this displacement leave period, your status would still be EMPLOYED, when talking to recruiters and hiring managers.
Now, there is no longer a displacement leave period. You're TERMINATED at the end of the notice period (60 days). You're now in a severance period, the length of which is still calculated at 2 weeks for each full year of service. You're paid bi-weekly paychecks, on regular WF paydays, during your severance period. However, your status is no longer EMPLOYED. It switched to TERMINATED immediately after the notice period, even though you continue to get paid (on regular paydays) for the duration of your severance. When talking to recruiters and hiring managers, you can't avoid saying that you're UNEMPLOYED.
TLDR...
Previously you could claim to be EMPLOYED for the duration of (notice period) + (displacement leave). Now you can only claim to be EMPLOYED for the duration of the notice period, because you're immediately UNEMPLOYED after that (even though you continue to receive severance paychecks + benefits like medical).
Here's an example with numbers to better illustrate why this matters:
Let's say you have 8 years of service, which translates to 16 weeks of severance, or about 4 months severance. This is in addition to the 60 days notice period that everyone gets at a minimum. So the grand total is approximately 6 months of pay + medical. Not too bad right. You get half a year to land on your feet again, without worrying about pay + medical.
Previously, you could claim to be EMPLOYED throughout those 6 months, when job hunting.
Now you're only EMPLOYED for the first 2 months (notice period) and UNEMPLOYED for the remaining 4 months (severance period), enough though you receive pay + medical for the full 6 months. The UNEMPLOYED tag certainly doesn't help when job hunting.
One thing I'm unsure of though, is whether the medical benefit (during the severance period) is at the WF group policy rates, or if they're at COBRA rates, where you get the privilege of bending over, coughing twice, and paying full rack rate price.
The change they implemented is to remove the "leave" portion when displaced. Upon the end of your notice period, you are terminated and if you did the paperwork on time and didn't revoke it, you are eligible for the severance pay based on years of service. It is paid out on the bi weekly schedule unless you notify WF that you have obtained a job elsewhere, or in certain situations you can request a lump sum payment without having obtained a new job. It also points out that anyone displaced cannot return to WF as a contractor for at least 6 months (nots sure if that's new or not). You still eligible for certain benefits during the severance pay period. It's in the policy book, and that tells you what to search for to see the current plan as updated 1/1/2022.
Prior to this change, when your notice period ended you were placed on displacement leave until the end of your severance payout and would be able to apply for jobs internally. Now that you are terminated immediately on the notice period, you likely will not have access to internal postings. This aligns with the disbanding of the STAR position while they now are hiring contractors like crazy to fill positions.
Inaccurate information
Y'all even work here? Couple minutes of searching answers this question
"Following your termination of employment, you will receive BIWEEKLY post-termination severance payments on WF regularly scheduled paydays...."
"You will be eligible to continue participation in some of WF benefit plans such as medical, dental,....."
Salary Continuation Leave was considered a benefit - and included in the benefits book. Severance is not a leave/benefit and that's why it's not in the benefits book and is its own separate document.
2 weeks for each year of service
Early retirement is typically a lump sum payment for you to leave.
Good post. So what happens if Wells offers early retirement? Would that be separation or severance pay?
That's the very difference! Severance ends immediately after lump sum payout, you !d!ot! So NO benefits.
Read the docs. It specifically notes even though it’s called severance, one is still eligible for benefits (e.g., medical insurance) through severance unless and until severance ends or you notify them you got a job with another company.
Massive difference.
With separation pay, you got paid out on regular payroll schedule and KEEP BENEFITS (medical, etc.) during that time, since you're considered still on payroll.
With severance, you get a lump sum payout (not over time), so no prolonged benefits.
Some prefer the latter, since it means you can file sooner for unemployment in many states vs. having to wait to be off payroll. But the medical benefits loss is a major hit for many.
Clearly, this a major win for WF.
Despicable company not to be more open and honest about this change.
Post ID: @wrq+1eDUIPUo
I have friends that were laid off last year and they were notified of the change. We couldn't figure out what the difference was other than WF is taxed differently on it.
Its a one pager........just the word spelled out "Zero"
This is actually important - it means that if you're laid off you'll get a lump sum payout rather than salary continuation over a period of months. They want you off the books ASAP. Have this on good authority.
Search Severance Summary Plan in Teamworks and you'll get the full severance plan summary document. It looks the same to me except for the severance vs salary continuation naming change. It's just apparently in a completely separate document now.
Great question. I just spent 10 minutes looking for it too. Prior benefits books had a section with definitions and breakdowns for length of service and how that translates to severance time. This year nada. Just a vague reference? Does this mean they forgot to add it.. or are they just going to make it up as they go along? No severance means any non disclosure agreement is out the door.🤷🏻