We’ve all made mistakes at work, but have you made a $2,666,594.03 mistake? On one employee? Hold onto your hats, because you don’t want this to happen to you. Here’s what happened.
Trico Products Corporation laid off Francois El-Hayek after 28 years of service. He was supposed to receive 34 weeks worth of severance pay in exchange for signing a general release. (A general release is a legal document that basically says in exchange for this severance I won’t sue you–except for things that you can’t legally waive.) This is all pretty standard in a lay-off situation. At the time of termination, El-Hayek was earning $123,585 per year, so with 34 weeks of pay that should be $80,805.97. Not a bad amount of severance. (Although for the record, I recommend a minimum severance of two weeks per year of service, but no one asked me.)
To keep reading, click here: When HR Makes a $2,666,594.03 Mistake