My colleague (gaijin) at a gaishikei recently opened up to me, that they want to get laid off/fired in order to collect severance, and already been trying to hint to their manager about it. I was also asked to provide a negative performance review in our annual process, so that it would help their cause.
I know the person well, so I understand the why (fed up with the company after long tenure, no prospects of promotion) but isn’t this shooting yourself in the foot – is the severance pay even guaranteed ?
I don’t know labour laws in Japan well, so I suggested to consult with HR about “hypothetical” cases on performance based firing, so that they don’t end up empty handed.
Any anecdotes?
19 comments
Unless the company is currently offering early retirement packages, it’ll take a while for them to get laid off, at least as long as the company is doing it by the book.
If they suddenly start underperforming they would usually be put on a performance improvement plan (PIP) but that process than takes about 9 months. If performance hasn’t improved until then, the company can let them go (They’ve provided support, they’ve given feedback, they documented everything).
If it’s not just a performance issue and they make some serious mistakes, there could be disciplinary action all the way to potentially dismissal but then there wouldn’t be a severance package.
Assuming your friend is a permanent employee the company rules likely provide X months of pay per year of service when you “retire” from the company. Unless he’s trying to immediately go on unemployment (rather than wait 3 months) there is no benefit to being laid off/fired. Even a bad performance review isn’t enough. Layoffs are incredibly difficult for a company to do. Firing is a little easier but you almost have to punch someone. Or is the hope that with a negative performance review he can get offered a buyout to resign? Also incredibly unlikely with most companies policy being extensive performance improvement plans etc. One negative review isn’t nearly enough.
Anyway there’s no negative stigma, because of defamation laws companies don’t check the reason you departed your previous job unceremoniously.
This doesn’t seem to be the right way.
If the company is under financial strain, or is reducing the workforce in general, your colleague should talk to whoever holds the money bag and figure out a deal.
Don’t write a review that isn’t truthful! That could backfire massively for all concerned.
Sounds like you are at one of those monster firms with a 360 review process.
Tell your colleague to suck it up and save up so they can just quit.
As to the point if severance is guaranteed. It isn’t but there without grounds for dismissal they’ll need to offer something for someone to quit.
Don’t be confused by the other poster taking about a retirement allowance.
My wife did this right before we got married. She already had another job lined up then she talked her country manager into letting her go with a years salary payout . That paid for our wedding and honeymoon lol.
Man, I dream of getting some massive payout from my company for some kind of labor law infraction. Ain’t ever gonna happen though.
My advice would be honest. It may well be music to HR’s ears to hear he is looking to leave. Perhaps something like:
X has met the (minimum) requirements for his position (and shown to be very capable when motivated). He has made clear though that he not fully aligned with the goals of the company and doesn’t see a future for himself within the organization. As such, I do not believe we can rely on him long term and it would be appropriate to start considering how to mitigate a situation where he resigns, or even consider preempting that scenario should there be benefit to the firm in restructuring the business.
If the review is untruthful it could cause you issues, even things like power harassment could be claimed like you are singling out and lying about someone’s performance to cause their job issues. I doubt that would happen in this case but why take the risk?
If he’s willing to seek underhand ways to get severance, what makes you confident writing him a false review isn’t another way for him to get a pay out at your expense?
I think there was a misunderstanding on the negative feedback – his performance was lacking, he admits it, however typically we try to highlight the positives during the reviews (after all, we’ve been working together without issues for a while). He’s basically asked for highlighting the negatives too.
Having been laid off in Japan and having made people redundant, I would say don’t do this.
You have to agree to a package. When you ask for it, you’ve completely lost your negotiating power. So if they come back with a crap package or something minimal (whichi is very likely), you have to take it – OR – walk back your request to be made redundant. If you add to that a negative review, you are additionally eroding your negotiating power and cutting off your career if you walk back the request.
thread carefully here. HR will gladly ride a person for 6 months rather than give up 6 months severance.
Probably unlikely in most cases, but be warned that collecting severence packages and such under false pretenses *can* open you up to fraud allegations and claw-back clauses. There was a reasonably well-known case in the UK where a C-suite executive told his company he was retiring due to ‘health issues / spend time with family’ and he was allowed to leave with his full severence package and bonus paid up front, early.
Turns out he already had another job lined up as CEO of another (smaller) company.
Regulators found out and forced the company to dismiss him, with cause. His former company then sued and he was forced to pay back the bonus and most of the severence package.
Again – highly unlikely in most cases. I can’t recall any such case in Japan. But the basic rule of business is – being willingly untruthful on purpose is rarely a good idea. If your co-worker wants a way out of the company while getting a golden parachute, that’s his business. Let him worry about that. Don’t get involved.
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One story in my group of friends – a guy was about to resign ’cause he was fed up with the company. He printed out his resignation letter, signed it, put it in an envelope, walked over to his manager’s desk….but his manager wasn’t there. He debated putting it on his desk, but decided he’d give it to him in person, so he puts the envelope back in his pocket.
10 minutes later, HR asks him to come into a big meeting room. He’s one of a few hundred people eligible to receive a special severance package if they choose to resign.
Another guy I know got a golden handshake 3 times in a row, in the span of like 10 months.
Severance is guaranteed if you get fired without any outrages record – super bad performance, very unethical behavior, misconduct, etc. (IMO this part of labor law is not that diff from country to country)
However, if you write untruthfully and it backfires you can be fired without severance cuz it’s obviously misconduct…
Employees who are wrongly dismissed can take their case to court. However, it takes time and costs a lot of money. Upwards of 300,000 to hire a lawyer, another 50,000ish yen for court costs plus lawyers cut of 15-20% of any settlement or court awarded damages. Actual costs depend on the lawyer so don’t quote me on that.A lot of cases end in a settlement before they get to verdict. Often for a few months salary. If the plaintiff actually wins the case then they’ll be awarded backpay and get their job back. Of course, they can also lose the case then they get nothing but wasted time. The whole process is very stressful.
The other possibility is if the company asks the employee to resign and offers compensation to do so. They will likely not do this without good cause such as downsizing. Being fired for poor performance is reasonable dismissal and there’s no need or obligation to pay any kind of severance if it’s done correctly.
Your friend would be better off looking for another job.
Can we know the company by any chance? I know someone in the exactly same state.
This is new.
Pro-Tip: The HRE Manager is not there for the employees.
Pro-Pro-Tip: Cover your arse.
I wouldn’t help someone who just wants to game the system. He needs to take responsibility for his feelings about his work and make an appropriate decision as to what he wants to do next. Being dishonest and asking others to be dishonest on his behalf is the type of person that I want to have absolutely nothing to do with.
As others have advised, don’t bork the process. You’ve already shared that there won’t be any untruths, but (significantly) writing something outside of the norm, even if is requested by the candidate himself, can possibly open you (or your firm)up to some liability or other (eg, bullying / harassment, etc)
Sh** flows downhill, and going against the flow can backfire. This is a job, and it’s paramount to always cover your **. Doing favors on your own accord is usually not.recommended.
‘I understand what you are asking for, and the reasons for it, but I am not in able to do something differently just for you. But, if I am instructed to do so by (someone above me), then I would follow their instructions. So, if it’s something that you absolutely want/need, please speak to (person(s) above me) about it. ‘