This is not exactly “FIRE” related in the narrow sense of the term, but since the question is financials/money related I thought it could still belong in this forum and help out others who may find themselves in a similar situation…
In short, I am sending out an SOS in case someone is either a Swiss labor law expert and/or has been in a similar situation already… Let me give you the context first: the company I work for is currently ongoing a very large restructuring (note: this is not CS/UBS related) and my role will be eliminated, which will make me eligible to the “social plan” and in particular the severance package (X months of salary per year of tenure). However, the company would in fact like to retain me and is currently offering me several different options/roles, which is making me hesitant because there could be other waves of restructuring in the coming year(s) and there are rumours that the severance conditions of the future waves could be a lot less favorable than the current social plan (I won’t go into details as to why as it could give hints as to what company I am talking about, but I believe these rumours are very well founded). My question is therefore the following: if I were to take another role with the company (and therefore sign a new contract), do you think that 1) it is realistic asking HR to include a clause in the contract roughly saying that “if I get terminated not for cause in the next N years, then the severance conditions would be at least equal to the conditions of the current social plan” and most importantly 2) would such a clause actually be enforceable per Swiss law (given Swiss labor law is very liberal / employer-friendly)?
Thanks a lot in advance for your feedback and expertise…
Well you can ask, but I would make it more concrete, i.e. instead of referring to the social plan simply state “If fired within x years for whatever reason, a termination payment of $X would be paid.”
Whether they will offer that depends on how much they want you to stay on/relative negotiating power.
You can try. Sounds like a stretch though. I have seen a few of those reorgs and the last thing they wanted to do then was to make special arrangements.
As to your second question, of course that would be enforceable. But I guess the specific wording might be difficult to agree. They would probably not want to commit to severance were they to fire you for any other reason. And you probably would not want to give them a reason to fire you even before the next round.
Lastly, I have seen people leaving with severance, and some even declined other roles that would have allowed them to stay. Many have regretted this. Unless you are super confident that you will find a simillar/better role elsewhere within 3 months, I would stay (provided your new role would be at least equal to what you have now).
I think a lot depends on the company and they typically work on these things. Some companies have super stringent HR policies that are enforced throughout with very little space for manoeuvre and some are more decentralised and independent with a lot of leeway for decisions at local level.
In any case, personally I think your request makes a lot of sense given the current company situation and hence asking will not harm.
If a clause like that is in your contract it will be enforceable. They will likely add a bit to say that they will not pay if you are fired because of gross negligence - which makes sense from their standpoint.
I changed job last year and asked the new company for a clause that they would pay my buyouts if they cancelled my contract before starting given I was giving up money by resigning and had a long notice period and in today’s world one never knows. Company did not bat an eyelid and clause was included.
So always worth politely asking and do as Phil says and make it as concrete as possible.
Sometimes company restructures go along the transfer of all remaining employees to a new legal entity. The previous legal entity keeps debt, lawsuits and all the problems…like a “bad bank”. I would bet that the previous legal entity is the one offering the severance package. So, check first if you’re not dealing with 2 different organizations.
This is true and also that they likely have now a restructuring fund. Any future costs would need to go to a different fund. All possible of course but will impact the possibility of doing what you are describing OP. In any case, I think worth asking.
In a similar situation I took the package and then continued in a freelance role. Was good for my employer as they still cut the headcount because freelance does not count