Outplacement counselling and working notice

Question: Is it common practice to give outplacement counselling during a working notice period, even if the intention is to have the employee work right up until the end of the notice period? What happens if the employee finds another job before the end of the working notice period?

Answer: In recent times, with the difficult economy most employers have faced over the past year-and-a-half, I have written and spoken repeatedly about the issue of how to go about cutting labour costs. In this context, I have also encouraged employers to "think outside the box” when it comes to dismissals. Many employers have a standard approach to dismissals, such as always providing a severance package that includes a lump-sum payment. In many circumstances, it will be more cost-effective to proceed in a different manner. Working notice, salary and benefits continuance, clawback provisions and other options are all available.

Unless a lump-sum payment is offered regardless of whether or not the individual attains new employment, it will be in the employer’s best interests for the employee to find a new job as quickly as possible. If the employee is in the midst of a period of working notice and she resigns, the dismissing employer’s obligations are dramatically reduced, or may even be eliminated altogether. Similarly, the employer can structure the dismissal so it provides for salary and benefits continuance that will either end or be reduced in the event the employee finds a new job. For these reasons, I encourage employers to provide positive letters of reference in most circumstances.

With respect to the specific question above, outplacement counselling is not something employers are required to provide. With respect to whether it is a standard practice, this will vary greatly from industry to industry and between different types of positions. In certain jobs, the provision of placement counselling is extremely common. In others, it is almost unheard of.

If an employer is of the view that providing outplacement counselling is likely to assist the individual in obtaining a new job sooner and therefore reduce the employer’s obligations to the employee, then I encourage employers to consider providing outplacement counselling. It can often be used to sweeten the deal in order to have the employee sign off on the severance package that is offered and provide a full and final release in favour of the employer.