Legal Question in Employment Law in Pennsylvania
Being asked to lie??
My sister worked for a major healthcare
company for over ten years. Her service
record was exemplary, never any
problems, etc. Just a few days ago, she
was told that her job was being phased
out. The company offered her three
months severance, but in order for her
to collect the severance, the contract
stipulates that she must say she is
resigning, and cannot tell any of her
fellow employee the truth, or she
doesn't get her package. Is this ethical/
allowable? What recourse, if any, does
she have?
2 Answers from Attorneys
Re: Being asked to lie??
It is contractual, so if she signs, it is legal (does it say :she can't tell the truth or does it say she has to keep the circumstances confidential?) I will leave up to you whether it is ethical or not. In the absence of an employment contract, she is an at-will employee which means she can be terminated for any reason or no reason at all. Her recourse would be to not sign, get fired and try and collect unemployment - not a good result, she should take the severence.
Re: Being asked to lie??
You asked about the ethical implications of a severance agreement.
Must suggestion is twofold, first look for any underlying cause for termination. Is there some sort of discrimination going on? Next, look to what the agreement says. I tell clients to never lie, and any agreement that suggests otherwise is going to have a tough time being enforced. A severance agreement can say that she must not disclose that she was terminated but it cannot demand that she lie. In the alternative, does the agreement say that she agrees to resign in return for compensation?
She should really see an attorney with experience in employment law to get advice on the matter. It is worth the time and money to get advice on what could be a devastating life change for her. I would note that the time the employer is giving her to consider the agreement is a legal requirement with the assumption that she will get legal advice during that time.
And she should do the math. It may be to her benefit to collect unemployment and retain the right to sue. I see no reason to simply take the first offer the employer makes.
Regards,
Roger Traversa