employee termination: Employee faces tough call on PIP — resign now or take termination and benefits? Technicalities leave everyone confused
A candid Reddit post detailing a difficult exit from the workplace has sparked widespread debate online, as an employee revealed that he was fired after completing a 60-day performance improvement plan (PIP) and was presented with a final choice: resign voluntarily or be terminated.
The person, who has worked in the finance industry for almost a year, shared his experiences on the r/jobs subreddit, seeking guidance from professionals and others who have experienced similar milestones.
What Happened During PIP?
The employee was placed on a 60-day PIP that included bi-weekly check-ins with management, according to the post. Previous reviews have been encouraging, with the manager acknowledging progress and improvements. However, at a later meeting, new performance challenges emerged that changed the direction of the process.
Shortly thereafter, the employee was summoned to a meeting with human resources and informed that their employment would be terminated regardless of previous progress.
Options Offered by HR
HR described two possible paths, each carrying the same benefits but different long-term consequences.
The benefits of both options were:
- Pay by the end of the week
- Payment of unused paid leave
- Health insurance coverage until the end of the month
However, in both scenarios, severance pay was not foreseen.
If the employee chose to resign, he or she was advised that he or she could describe his or her departure as pursuing new opportunities. Choosing the termination option, on the other hand, will make them eligible to apply for unemployment benefits, but with the caveat that future employment will be checked it could be Termination of reference for performance reasons.
The Employee’s Dilemma
Unsure which choice would be wiser in the long run, the Reddit user asked the community many questions about references, unemployment eligibility, and whether resigning actually provides any benefits.
They later came back with an update and wrote:
“Update: Thank you all for your responses. I appreciate the conversations that have been had. I’ve been here for a year to answer some questions, the industry is finance and I eventually accepted the layoff and filed for unemployment. I’ve started applying for jobs and I have a side hustle to help keep me afloat. I’m feeling demoralized and defeated but to anyone in the same situation remember this is just a point on the road, we’ll be back soon!”
How Did Reddit Respond?
Many commenters made direct recommendations, asking that the employee not resign just to save the company on unemployment liabilities. One user wrote:
*”Layoff….they are just trying to trick you into not paying unemployment. Either way they will say the same thing as a reference…I think most companies have a policy of just giving start and end dates and maybe rehire status.”
Others emphasized that resigning under pressure may still qualify for unemployment in certain jurisdictions:
“I don’t understand why everyone thinks ‘resigning’ will cost you unemployment… Check to see if it matters if you say ‘Resign or be fired’ because in most cases it’s not ‘voluntary resignation’ at all.”
Another commenter highlighted the realities of the current job market:
“I’d have them fire me and roll the dice on ‘may’ to let future employers know you were laid off for cause. The job market is tough right now, and unemployment could keep you afloat until you find a new job.”
Some reactions also touched on unconventional referencing approaches and sparked debate about ethics in hiring practices.
FAQ:
Q1. What is a performance improvement plan (PIP)?
PIP is a formal process that employers use to address performance challenges. It usually outlines goals, timelines and regular reviews.
Q2. Does PIP always result in termination?
Many, but not always, employees report that PIP may indicate a possible exit. Results vary depending on company culture and management intent.
