Re:HP to cut 25-30k jobs
by jsprogrammer on Wednesday September 16, 2015 @05:42AM
(#10225547)
Would HP really try to get someone they are laying off to sign a noncompete contact?
I don't know about HP, but a common tactic is present a noncompete few weeks before a mass layoff and stipulate it is: "Sign or be fired". In some states, this works because your future employment can be viewed as sufficient consideration.
IMHO Noncompetes should be banned, or there needs to be legislation which requires the employer to pay 100% of the salary of the laid off person for the rest of the term of the noncompete. If they want to prevent the ex-employee from going into business and competing against them, they need to pay the ex-employee for the privilege.
I would assume they are in a very defensive mode and are thinking about liabilities and risks as they continue to hemorrhage employees and potential revenue. This makes it much more likely that they would try to protect themselves through any legal means possible. No company would plan on laying off 20k+ people without thinking about minimizing their liabilities and protecting their sources of business.
Often times this stipulation can be part of a severance package.
Do not underestimate hilarity of corporate legal.
He has probably already signed one as part of his employment.
If you're laid off, that probably doesn't apply anymore. It would have to be negotiated as part of the severance package.
Contract work is not as difficult as it sounds. He already knows the work involved, can do a good job of estimating the hours of work, and getting the number of employees to match that work, and then par for the course is 2x-3x of the salaried rate because a.) the contract can be terminated, no severance, no health care, no bennies, b.) the companies can afford it and are likely already paying that or more for the same contract with HP, c.) he'll need business liability insurance, and slightly more complicated book keeping and tax assistance. It's completely sane for him to ask a company he has a very good relationship "what's in the budget?" if he doesn't already have an idea what this amount ought to be. Don't undercharge. It's reasonable to offer a discount for say 2 or 3 year contracts. If it's hourly, it should be expensive to incentivize contracts.
Anyway, this can also be referred to as "slow retirement" which is a working retirement.
Oh and the home improvement investments seem sane also. They certainly aren't getting done, and will need to be done at a bad time if he does get let go or goes for early retirement.