For those that are let go and have less than a year with VMW can we expect 2 months + 1 week which I believe is the current standard severance in place.
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The Broadcom US policy does cap out at 40 weeks. The VMWare plan will be in place for 1 year post close and then people will default tot the Broadcom plan.
there was someone or some article that mentioned the severance capped out at like 40 weeks, unsure how true that is but that's a huge amount
VMW standard is 2 months + week/year of service, not sure if Broadcom is going to follow that but the hope is that VMW will negotiate the same terms with them
Mr. Hock Tan said he would be fair to those who depart but that of course could be a whole lot of "Hock-wash"
Perhaps not at every company, but for some, there is such "waiving legal rights" clause. When I was laid off by my previous employer, I did receive an additional sum for agreeing to all terms and waiving my right for any legal actions. That sum was additional to the week per year of service severance pay. The whole severance package was consisted of year of service pay + "rights waving amount" + left over vacation cash out + retention bonus + 5 months of COBRA. I did not receive the basic 2 months pay from WARN because we were given 2 months notice. Obvious for those 2 months, not much was done except for interviewing for new jobs. Some people intentionally delayed the starting of their new jobs so that they would start the new job after they were laid off so they can get severance.
There is no such thing as a “don’t sue me clause”. Once you sign the severance agreement, you waive all your rights to sue the employer. A severance payment is not required by law in the USA, so if you accept the severance, you can’t sue them.
Another thing is that there is usually a clause that would try to "buy" you off for not suing the company after you leave. I am forgetting what that term is called, but if VMWare has that as well, then that would be on top of your normal severance based on your years of service. Although as some mentioned on this thread that VMware gives you a minimum of 2 months, so perhaps that 2 months minimum is to cover the "don't sue me" clause.
There is usually a cap on the number of weeks for years of service in terms of severance pay. Some companies cap at 10, some cap at 12 or even 20.
Assuming that they use something similar to VMware's historical severance formula (such as 2 months plus one or two weeks per year of service), do you think they would cap the total severance at some point? For example, if an employee had been in service for 15 years (and assuming they offered two additional weeks of severance per year), that would roughly be an additional 7 1/2 months of severance (or 9 1/2 months total). Would they really pay that much in severance or would they put a limit on it?
Germany has the best worker protection, because after they are officially notified in writing that they are terminated they must still be paid a full salary to include raises, bonuses and stock for 6 months later.
Many of my German colleagues who were let go only stayed a month and were fully paid for the remaining 5 months and then afterwards they received a huge cash payment, which was fully taxed.
They were easily able to pay off their houses and find a new job rather quickly.
Any experience regarding EU countries where job contracts are more protected like Germany, The Netherlands, France, Italy, Spain ecc? 1 week for every year of service doesn't seem too much considering we have an higher notice period (3months) and we don't have stuff like CORBA ecc and generally our compensation is on average 30/50% less than the US counterpart...Do you think we may expect something more like 1 or 2months per year of service?
Severance in the USA is paid in a lump sum. If the WARN Act (in the USA is triggered - most likely will be), you will remain on payroll through the WARN period.
In terms of the RSU, remember you will be see all VMware RSUs that vest before the deal close date, any RSUs that are due for vesting post deal close will be accelerated and converted to Broadcom shares as per the internal FAQ site from the homepage on source
Anyone else wish to comment on this, as this was what I have seen and few others validated
No one REALLY knows right now. They are looking at what VMW has done in the past, what broadcom has done in the past and a leaked (uniformed probably a working version) document that in one section notes that the severance cannot be less than what VMW would normally offer.
Today we are literally one week from this being public and they are all sitting on a letter of intent and some preliminary paperwork. Details like severance and stuff wont have a project deadline until a month or so before the closing/potential cuts.
So dont listen to anyone yet. Basically in the past VMW has had 2 months + a week per year of service. And during that 2 months you are still vesting...
So assume a February close on the deal. Lets just swag Feb 15. 2 months takes you to April 15 (bonus pay out in the US) plus June 1st is a big day for the old stock RSU grants to vest with Feb 1 and May 1 being smaller (more recent) qtrly vest dates...
If you can hold, and stretch a little (using history and the knowns) you can get a pretty good idea of where you wind up.
Hope for the latest close data possible.
Get your severance.
Get your Bonus
See if they are offering any short accelerated vesting (that big June 1 drop)
You could wind up (even with 3 years here) with almost 3 months of severance pay, Cobra (health care pay) Your bonus, AND some of the RSUs that are vesting or vest in a short time.
For me that is real money. Could be close to 1/2 a years wages.
Does anyone know if severance is paid as a lump sum, or do they keep you on the payroll for that time? Asking because I've been there over 10 years and I'm thinking about the tax implications.
I have read elsewhere that the basic minimum is 2 months and then you get additional weeks based on tenure. That is the current VMW policy as I understand it (someone can correct if it is inaccurate), not sure what this policy is going to be like.
oh really? I thought its 2 weeks per year. If less than a year, then i guess either nothing or 2 weeks?