PDA

View Full Version : Pay Cut vs Severance


USDream2Dust
09-30-2009, 02:53 PM
Folks, I am in a very ackward situation.

Little bit about me.

July 2007 filer with EAD and AP and H1 current with the same employer who filed for EB2 GC. Direct hire and not consulting.

My job is in danger for most of the year. But since my company is moving all it's customers from our current site to a new 3rd party product, they needed me to maintain existing site.

My salary lets say 100k for 2009 year after 10% paycut and lots of layoffs in team.
Till today, I am earning exactly above salary and have about 78k earned.

Now my company needs me to work for 2 extra months for 60% of 100k salary, before they free me up in december. I am thinking it is fair,since I work from home and I haven't worked anything all this year due to economic slow down and just maintenance work.

They also would give me 3 months severance of full pay (and not 60%) after December.

I currently have an RFE on my 485 for medicals and would be replying for it.

2 options I have is.

1. fight back with employer to pay me 100% for 2 more months and I would burn bridges with them. Even though they may pay that now since they need me, they would take severance out and good reference.

2. Accept the salary cut for 2 more months and be happy for finding new job during those 2 months. Also my benefits would remain and have not to worry.

Do you guys see any disadvantages of 2nd option from immigration and career point of view? also I think 2nd option is safe incase I get another RFE for EVL and I have my current GC job with them.
Am I missing something?

Thanks for your feedback. Desperate times calls for desperate measures.

USDream2Dust

indyanguy
09-30-2009, 03:00 PM
You definitely dont want to burn bridges with your employers. Having said, after you take the paycut, is your salary for the year >= to the wage as per your Labor application? If so, I would take the pay cut.

ivgclive
09-30-2009, 03:05 PM
40% reduction is very hard. Sorry for you.

But if it is for 2 months + you get 3 * full salary as a package, you should consider.

It not only gives a happy ending, which is important but maintains your relationship with your employer, which will help in the long run.

So please, consider not burning the bridge.

USDream2Dust
09-30-2009, 03:08 PM
I think if I am doing my calculations correctly. I should be way above it.

I tell you how I did calculations.

78k till september End.
Plus 9k till November end.

That is 87k. I had 88k in my prevailing wage.

Now if I get 3 months of full severance in December that would be around 24k?

Am I doing it correctly?

Also I missed couple of points. I am not actively finding new job since My wife is 8 months pregnant and I want to be with her by working from home. Any initially september was supposed to be my last working month with this company and I was going on severance after that. But now since the plans have changed,I don't think it is severance vs pay cut.

ocpmachine
09-30-2009, 03:17 PM
Sorry to hear about your job situation.

I would take a paycut and keep the employer happy in current job market, who knows company might turn around next year
and may hire your right back, they are also giving you Severance pay which is good gesture from your employer.

Also, rememeber Nov-Feb window is very slow for job market, companies will not hire unless they have budget planned/allocated in Jan/Feb. Given the current options, i think its a fair deal and win-win for both.

Good luck.

-Mach

xela
09-30-2009, 03:19 PM
Here is what I was told when i got a paycut of 10% however i am still working under my H1B not an EAD. I did not see you clearly say whether you still work as H1B or wether you switched to EAD.

As long as my pay was above the H1b Labor cert required minimum pay, all is good legally. Even though the letter that was sent for my greencard stated a higher salary, it does not have any impact because it is for a future job not my current job.

So if you are on H1B and the last salary you got the H1B with is less or equal to what you make with the pay cut you are fine, and legally they are not required to pay you more.

Just be careful with the hours, I was told that h1B usually is full time emplyee and in my case that means 40 hrs, so you still have to be employed for 40 hrs and not cut your hours. You can only have a paycut.

Dont burn your bridges, respond to the RFE asap, if you have not yet received a rfe for a verification letter that shows that you still are offered the job your greencard was filed for expect to see one coming.
So find a new job asap while you are still working for the old compnay and then invoke your EAD or transfer the H1B and make sure the new company is willing to provide you with a letter for the RFE should it come to verify they now offer you the job similar to what is been stated in your greencard papers.

Hope this helps

mps
09-30-2009, 03:36 PM
My friend:

I know exactly how you feel, since I have been through that 5 years ago. I had to quit that job and get a new one while I was in 7th year of H1 extension, leaving my old Labor behind with PD of 2001.

What you need right know is to negotiate hard - without burning any bridges!

They need you for two months - make a strong case for full salary because by law they have to give it to you however you and your employer really don't want to get to that point.

I know only thing which is pinning you down is your GC and your employer knows it fully well.

You can say that,

- Your pay cut will have negative impact on your pending GC

- 40% pay cut is really too much to take right now - you rather have full salary while you work for next two months and get a lower severance pay (Remember that severance may not come if it's not in writing and with severance you have option to file for unemployment)

- For God sake don't sign any agreement and keep your legal option in back of your mind

Martin Luther king once said,

"No one can ride your back until its' bent!"

Is it time to start a support and advocacy group of IT professionals for collective bargain in order to protect our rights and prevent such a blatant exploitation

OR

…continue to flow with free market theory?

USDream2Dust
09-30-2009, 04:00 PM
Thank you guys for all the positive Replies.

here is what I have learned.


Option 2 is the way to go. I would try to negotiate it more than 60% but I doubt. Since originally it was a job cut and then they proposed 50%. I am guessing that 60% would be acceptable if I negotiate. I don't see any more hope more than 60% but after all the suggestions I would definitely try to push it.

Like I said, it is more like win a win for both of us, since I am not finding job due to bad market and due to personal reasons of being with my wife when she delivers our first child.

I am just hoping I get the severance in writing like you guys mentioned. Another thing that just crossed my mind, is if with god's grace I find a good job in next 2 months, I would loose severance as since severance is only for laid off and not for employer switchers. So I would have to confirm that before I jump on deal and would have to get severance as bonus or something. Not wanna loose that money as it can be very helpful in bad times.


Do you guys see any thing in terms of career growth? Like If i am making 100k next job would be around 110k or some growth. But If I am making 88k next job would be 100k max? DO you think that would come into picture?

Thanks again,

USDream2Dust

xela
09-30-2009, 07:46 PM
Am i missing the point here or are you all forgetting that unless you have a future job offer, you will not get your green card.

while you can be unemployed on EAD you still need the future job offer to get your greencard and many of us got RFE to proof that we still have those.

If you go unemployed then you risk promopting the RFE and if you have no job letter your I485 will be rejected.

Also no they do not have to pay you anything beyond what is on the Labor cert paper, if they paid you more that was their prerogative, but legally they do not have to.

Be careful.

I understand you would like to be home for your wife, and believe me as a woman i appreciate man that is willing to to help like that, however make sure you do not get yourself in legal trouble with that.

Good luck :-)

USDream2Dust
10-01-2009, 12:16 AM
I got your point. I need to have a job offer in case If I get RFE for EVL.

I know it's bit risky but would have to find a job in holiday season. Tough as it may sound, I would likely hit a job.

ronhira
10-01-2009, 12:22 AM
My friend:
Is it time to start a support and advocacy group of IT professionals for collective bargain in order to protect our rights and prevent such a blatant exploitation


too bad..... afl-cio and unions has infiltrated iv.....

fide_champ
10-01-2009, 10:48 AM
Folks, I am in a very ackward situation.

Little bit about me.

July 2007 filer with EAD and AP and H1 current with the same employer who filed for EB2 GC. Direct hire and not consulting.

My job is in danger for most of the year. But since my company is moving all it's customers from our current site to a new 3rd party product, they needed me to maintain existing site.

My salary lets say 100k for 2009 year after 10% paycut and lots of layoffs in team.
Till today, I am earning exactly above salary and have about 78k earned.

Now my company needs me to work for 2 extra months for 60% of 100k salary, before they free me up in december. I am thinking it is fair,since I work from home and I haven't worked anything all this year due to economic slow down and just maintenance work.

They also would give me 3 months severance of full pay (and not 60%) after December.

I currently have an RFE on my 485 for medicals and would be replying for it.

2 options I have is.

1. fight back with employer to pay me 100% for 2 more months and I would burn bridges with them. Even though they may pay that now since they need me, they would take severance out and good reference.

2. Accept the salary cut for 2 more months and be happy for finding new job during those 2 months. Also my benefits would remain and have not to worry.

Do you guys see any disadvantages of 2nd option from immigration and career point of view? also I think 2nd option is safe incase I get another RFE for EVL and I have my current GC job with them.
Am I missing something?

Thanks for your feedback. Desperate times calls for desperate measures.

USDream2Dust

Option 1 is not going to be good even in good times. Option 2 is always safer as it gives you more negotiating power as you can ask your employer not to withdraw I-140 and save you some grief in future. If i were you, i would definitely go with option 2.

hpandey
10-01-2009, 11:16 AM
I think if I am doing my calculations correctly. I should be way above it.

I tell you how I did calculations.

78k till september End.
Plus 9k till November end.

That is 87k. I had 88k in my prevailing wage.

Now if I get 3 months of full severance in December that would be around 24k?

Am I doing it correctly?

Also I missed couple of points. I am not actively finding new job since My wife is 8 months pregnant and I want to be with her by working from home. Any initially september was supposed to be my last working month with this company and I was going on severance after that. But now since the plans have changed,I don't think it is severance vs pay cut.

It seems like a good deal. You get to work from home for the two months when you are getting a 40% paycut and your wife is 8 months pregnant and after that you get 3 months of severance based on full pay. Its a win-win situation.

Count your blessings and don't focus on the 40% paycut for two months. That's not worth it. I think your severance package will more than cover it.

ruchigup
10-01-2009, 11:58 AM
Don't burn your good relation with your employer.

But just politely try to negotiate saying that since your wife is expecting and your expenses are going to increase in next couple of months, can they consider 20% cut instead of 40%

USDream2Dust
10-07-2009, 03:21 PM
I tried to negotiate like all you guys said, and I used my Green card as the negotiating term.

End Result.

1 Month (octobers) Full pay and then I would be freed in November instead of december
I would still get 90 days severance pay.

Also since I got a chance to speak about GC I ask for couple of favours.

They won't revoke my 140 which is life saver.
They would also provide me with a letter for future job at the same company. I told them that they would never have to rehire me or pay me. I don't know if that would help a bit. But I tried to squeeze that letter incase if INS comes up with any EVL during my severance.
Any thougths?

USDream2Dust