Originally Posted by
downtube42
We have an announced reduction in force, and for reasons I don't need to explain here I'm at significant risk for being RIFfed
Generally there's a severance offer based on years of service. I have not heard anything this year, but in the past it's been as much as 1 month per year of service, which would be 15 for me. I'm guessing significantly less this time, but I don't know. You're given the option of a lump sum or continued paychecks with full benefits for the duration. The cost is signing a paper saying 1) I won't sue, 2) I won't go to work for a supplier, and 3) I won't go to work for a competitor. Refuse to sign the paper and I walk out with nothing. Terminated exempt employees are permanently ineligible for re-hire.
15 months pay would be a no-brainer, a virtual lottery win. But what if it's 3 months or 2 months or 1? The reduced employment options hurt - many of my professional contacts will be unable to help.
A lot would depend on just what this no-compete agreement actually entails.
If it means you get X months of paychecks with benefits and you agree not to go and work for a supplier or competitor during the time you're getting the checks, that seems eminently reasonable. Effectively what's happening there is that the company is paying you just as they were before, just not asking you to do anything specific with your time beyond not working for selected other companies.
If it means you get X months of paychecks with benefits and you agree not to go and work for a supplier or competitor at any time, then X has got to be pretty big to even consider it.
If it's the former case then a short period might be better for you than a longer period, you get maybe 2-3 months to find yourself another job while still being paid (assuming the contract only excludes actually working, as opposed to looking for work), and you don't end up effectively out of the loop for 15 months or more before you can work again.
I don't know the law where you live but I'd be very surprised if any company could prohibit you from working for a competitor at any time, however long it was after you left them. If that were legal lots of companies would have a strong interest in hiring anyone who looked even remotely suitable to working in their field, firing them after a month or two if they weren't quite up to the job, and thereby preventing their competition from hiring anyone with any skills at all.