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1114 points namukang | 1 comments | | HN request time: 0.2s | source
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abdj8 ◴[] No.43678249[source]
Layoffs are a difficult thing for employees and their managers. I have seen people (one was a VP of Engineering) escorted out of the building, sent in a cab to home along with a security guard (this was in India), not allowed access to computer or talk with other employees. But, recently have had a very different experience. The current company I work for announced 30% layoffs. The list was made public within one hour of announcement. The CEO detailed the process of selecting people. The severance was very generous (3-6 months pay) along with health and other benefits. The impacted employees were allowed to keep the laptop and any other assets they took from the company. They even paid the same severance to contractors.

After the announcement, the laid off employees were given a few days in the company to allow them to say good byes. I love the CEOs comment on this ' I trusted them yesterday, I trust them today'. This was by far the kindest way of laying off employees imo. People were treated with dignity and respect.

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apexalpha ◴[] No.43678562[source]
Weird, as someone from Europe I've never experience anything else.

Layoffs here are always done in conjunction with the unions. People are moved to different jobs, helped with training etc...

Only in very critical jobs they'd walk you out immediately but then you still get the pay.

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Scandiravian ◴[] No.43678984[source]
Having experienced layoffs in both US and EU companies, the difference is massive. In my experience there is very little respect for "the human" being laid off in US companies

People literally would just disappear day to day. I've had several instances where I only found out a colleague had been fired because I tried to write them on Slack only to find that their account had been deactivated

Personally I felt constantly worried working in such an environment and I don't want to work for another US company again if I can help it

There are of course bad cases in the EU, but in my experience it's way less common than in the US

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yodsanklai ◴[] No.43679579[source]
> I don't want to work for another US company again if I can help it

You can work for a US company in the UE. They have to follow the local rules like anybody else.

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gnfargbl ◴[] No.43679646[source]
Well, sure, but unless the US company is willing to set up an EU subsidiary and employ you via that then you'll be working as an independent contractor. That status gives you zero employment rights, because you're explicitly not an employee.
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jkaplowitz ◴[] No.43680094[source]
Many cases where someone is in practice functioning as a full-time employee are legally employment relationships according to both US and EU law even if the contract and payroll procedures say otherwise, and even if the contractual relationship is directly between a US entity and a worker in the EU. This includes whatever employment rights are supposed to exist, for the number of employees (whether or not misclassified as independent contractors) the company has in that country under its national employment laws.

Lots of US tech companies like to pretend otherwise, but a complaint or two from the misclassified employee can create plenty of pain for the employer for lying to both the US and foreign governments about the genuine nature of the relationship. And these penalties generally go not to the employee but to the employer, since the noncompliance is generally around employer tax, payroll, and reporting obligations as well as laws which are meant to protect employee rights.

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friendzis ◴[] No.43680351[source]
In practice, US tech companies literally buy their way out. They pay such a premium for those independent contractors that there would be no such complaints in the first place.
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1. jkaplowitz ◴[] No.43680571[source]
No complaints based on the amount of pay, maybe.

But for example, someone who is fired or laid off in a way that wouldn’t comply with local employment protections if the employment relationship were correctly classified might assert their misclassification claim so that they can also get compensation for their wrongful termination.

If that happens, then the company not only has to scramble to catch up on the overdue social contributions for the complaining employee and pay any applicable penalties, but also likely have to undergo an audit of their other workers in that country plus the same consequences for them.

There’s a reason why any US tech company that’s big enough to be a juicy financial target tends to do this correctly, and why companies like Deel, Remote.com, and their less tech-branded competitors (such as Velocity Global) are gaining popularity among people who want to do this correctly at smaller scales than those for which it makes sense to set up foreign subsidiaries.

When smaller companies take this particular shortcut, are risking severe financial consequences for the company if the authorities discover it, and in many cases this also comes with personal liability for some of the executives who are neglecting their legal duties.