What happens when an employee is laid off after a divestiture? Like when a severance is paid how many years of service is taken into account: is it the number of years at OT or at the new company? or do employees get a severance during divestiture? what happens to their PTO days etc.
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@eh payroll, facilities in the cheaper currency
@cz why OpenText is going to go back to its roots and have it’s ELT and most employees in Canada. OpenText is better when it’s a big fish in a small pond.
@cg USA is basically 'FU! Capitalism Rules!' You don't get sh-t.
I would assume it would be more cost-effective to do a divestiture than a WFR, since with a divestiture the employee count is reduced without OT needing to provide any severance.
Depends on the country you're in and the local labour laws. Germany offers a package which is usually 1 months for each year served. Ontario usually 2 week for each year served. I don't know about the USA, but I guess it differs from state to state?
@a1
Divestitures and subsequent layoffs are specific and unique to each deal.
Even if the 'new company' acquires all the headcount..almost always there will be a layoff. Sometimes it is within months of the legal close of the deal. The objective of most transactions on the buyers side is to make the deal (ie: investment) acreative.
Obviously if you've been layed off you get some severence. 1 week per year. Most I have heard OT has provided is 10 weeks.
Your ability to get a good severance might be affected by your employment contract - ie, they might have already explicitly limited your eligibility for extended severance and if you signed that contract, then you might have an uphill battle getting more. In some countries you have a right to see your employment agreement; ask HR for a copy if you don't have one yourself so you can see where you stand in case of WFR.
The poster that says
"If your moved to the new company. You get your job w/ the new company. you aren't let go. No severance."
Is completely incorrect.
After an acquisition there will almost surely be additional layoffs. They may occur immediately, or after a short transition period, or years later.
Many companies include tenure of previous company in the case of acquisitions and mergers.
But, the answer below is still applicable. in the US employers have no obligations to give any severance at all, and the formula they use to calculate severance are completely arbitrary, and therefore may or may not include tenure before acquisition.
TLDR: in the US, this question cannot be answered until acquisition occurs, and even then there may be no or arbitrary severance.
@a1 I think the OP is asking if the layoff happens to an employee after a divestiture, i.e layoff at the new company after all the knowledge transfer is done maybe in a few months or so
In the US, severance is completely up into the corporate overlords, it could be nothing, or it could be generous.
For example, I think HP used to offer 11 weeks + 1 week/year. Usually there is a non-disclosure and agreement not to sue attached to severance.
Given the nasty corporate culture of OTEX, I suspect severance is little to none
In some cases severance is more likely if they think you may sue.
If your moved to the new company. You get your job w/ the new company. you aren't let go. No severance.