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"No Re-Hire" Clause in my Severance Agreement – Why?? | Sklover Working Wisdom
Question: My employer was purchased by a competitor, and a large group of us were chosen for layoff. As part of the severance offer, I have to sign an agreement. One of the sections of the severance agreement has the title "No Re-Hire; No Application." It says that I will never again "seek to regain employment by the Company or any company that is affiliated with the Company." I haven't done anything to deserve this, and so I am wondering why they would take that attitude toward me. It's bad enough to lose a job, but this seems insulting. Have you ever seen this before? Fiona Elgin, Illinois Answer: Dear Fiona: This is not the first time I've received almost this exact question. It seems like more of a kick in the pants than a reasonably gentle "goodbye." Hopefully my explanation shines a bit more light on the otherwise troubling clause. 1. A "No Rehire" clause in a severance agreement is not meant to be about you, your performance, your conduct, or anything else related to you. The