I am aware of two individuals who were laid off, received a severance, and were rehired. Can someone explain the logic in that?
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They were probably brought back as temp/contractor. This what ADP has been doing since the first wave of the VERP’s.
They should take what is offered and make the best of it. Are you certain all are paid lower, or is it assumed? If they were invited back after layoff and a severance agreement, I would think it had to be passed through a legal review. A severance agreement is legally binding, right?
FAVOR isn't FAIR.
I’d love to get rehired as a contractor!
It is a matter of labor cost. If they rehire a previous associate as a contractor, then they save a ton of money. Contractors dont get benefits (medical, dental, etc, pension, 401k, sick, vacation days, etc.). Contractors are normally paid at lower rates and if they go through an employment agency, there are no matching ss/med, sui, futa paid by ADP. They are saving so much money by keeping their costs lower which looks and even appears to stock holders that they have a higher return rate. Smoke and Mirrors ....
Much happier since they let me go 2 years ago after 24 years.
Someone posted on one of the other ADP layoff threads about this. They were speaking about AT&T. and about this trend to shift some teams from being Full Time regular status to Contractors at these chop shop 'consulting firms'. That reduces salary costs, no benefits offered, and little to no vacation being offered. Then the chop shops send the Contractors into ADP to help on projects and chop shop gets paid by the hour at a nice fee.....
I think if they were let go, then rehired, they would not be eligible for pension and there tenure for accumulating vacation, would start over.
I was hired back as a contractor for a lousy rate. The project was a mess and they kept trying to give me more responsibilities. Basically taking advantage of me. Needless to say, I told them where to go.
Yes, I also heard that the ones rehired were back as contractors, not employees. And yes, they would be more easy to get rid of as contractors. I would not go back to ADP either as a contractor or as an employee. I am not a masochist.
They were probably rehired as a contractor. They don’t have to pay benefits so it’s cheaper for ADP. Also it’s super easy to let a contractor go once you no longer need their services. I wouldn’t trust ADP again after being laid off once.
They shouldn't have been let go in the first place. ADP made a mistake in trying to reduce its labor costs by eliminating experienced personnel. Now they need help when the inexperienced cheap personnel can't do the jobs properly. Help! Help!