Severance Scheme and new work start date

startupgrind

Hoping someone can help me answer my question!

I work for a university who are offering mutual severance right now and i have applied for a package - will know outcome in a few weeks. Simultaneously i have been applying for new jobs to try and start close to when i would leave. The severance scheme requires me to work my notice when i know the outcome, and on the last day of work i must sign a document agreeing to severance and agreeing that i don't have an new job offer or expectation of job offer. When i spoke with HR about this they said obviously we expect you will still look for work while this is going on but you will have to be careful about how you manage it - because if we find out you had an official offer before you leave the university can get in trouble for misuse of funds. She never told me anything more specific which is fair enough. 

So i am trying to update potential employers to this delicate situation as i go for interviews but i am actually unsure how my current employer (the university) would get wind of a new offer. 

My theories are any or all of these (but i dont work in HR so i have no idea!):

-at the point of references - i think this is less of a worry as my current manager is very supportive and a good friend. Plus usually the reference is still part of the scoping and not confirmation of a new job

-that there would be an issue if a formal offer in writing came before my last day...

-or that my current and potentially soon to be prior employer somehow will find out if a new employer triggers something with HMRC or perhaps my pension fund, would the new employer apply to HMRC for anything that might flag it up to my current employer

If anyone knows - this would be so helpful because it affects how i manage it with prospective employers. I can request they hold off on anything official until after my official last day, or let them know the background paperwork with HMRC or my pension for example needs to wait - i guess a further question here would be how long does it take to get a new employee on the system and up and running so i can understand the effect on my new potential employer in terms of delays. 

Grateful for any knowledge or advice! Thanks

born_again

Clearly if new employer asks for a reference than that will be the end of the matter.

Not really like you could say to new employer, please do not ask for a reference till after X date. It would ring alarm bells.

LinLui

i think this is less of a worry as my current manager is very supportive and a good friend

So your manager and good friend is willing to assist you in commiting fraud against the mutual employer? As a manager, if it were my good friend I would be advising them not to do that, not assisting them in doing it. 

You are entering into a contract with terms, and you are doing so voluntarily. It appears that you are looking for a way to breach the terms and obtain money to which you are not entitled, despite having been specifically warned not to do so. Despite not being your good friend, I would strongl;y advise you not to do so. It is not about the likelihood of your employer finding out what you have done (although that is obviously critical as there are serious consequences for you if they did) - it is about the moral integrity and honesty to not do something which you must surely know is wrong. 

Brie

Frankly I can't see how it's legal for any employer to state you can't have a job offer for a period of time when you are not employed by them.  One would assume they've checked with their legal team but it does seem odd.  I've been through redundancy (different I know) several time and they've said that if you take another job before your official end date then you lose your redundancy but you could accept a new role to start during any garden leave.

LinLui

Brie said:

Frankly I can't see how it's legal for any employer to state you can't have a job offer for a period of time when you are not employed by them.  One would assume they've checked with their legal team but it does seem odd.  I've been through redundancy (different I know) several time and they've said that if you take another job before your official end date then you lose your redundancy but you could accept a new role to start during any garden leave.

It's voluntary on both sides. A contract like any other contract. Either side can set whatever terms they wish, and you agree or not. And the OP would be employed by them - the term is that they must not have an offer in hand before the termination date. It also seems to cover knowing you are getting one and deliberately obfuscating that fact. They can look for employment but they should not secure alternative employment.

Our voluntary severence deals have similar terms. It is entirely legal.

lincroft1710

If you get an offer before you leave, be honest and tell the current employer. If you do and don't tell, the current employer may find out when they are asked for references and demand you repay the severance amount as you did not adhere to the conditions. Plus, more importantly, your reference from them may allude to your dishonesty 

LinLui

lincroft1710 said:

If you get an offer before you leave, be honest and tell the current employer. If you do and don't tell, the current employer may find out when they are asked for references and demand you repay the severance amount as you did not adhere to the conditions. Plus, more importantly, your reference from them may allude to your dishonesty 

And remember,  this is contract law. It's not about just the reference. They find out from gossip a year from now - they can still come after you. Breach a contract and they can come after you for a long time. Do you want to spend years looking over your shoulder? 

theoretica

It seems particularly odd to me that the point at which you must not have an offer in hand is the last day of your notice, not the first.  Maybe it isn't actually notice, if you could on the last day say 'actually, I think I will stay' and not sign the paper.  In which case, it would seem to benefit both you and the University to bring forward the timing of signing the severance contract - benefit them so they know you are leaving, and you so you can properly job hunt.

Wyndham

Are you sure that the stipulation is for ANY job, anywhere? I've seen clauses about not getting another job in the same institution, and in one case not being able to be re-employed by them for six months. But to say you can't have any job seems odd to me.

If the severance is from the employer, and the employer is large (as Universities tend to be), then if you get another job with them, the link is not being severed, so you wouldn't be entitled to severance. But I don't see how they can say you can't have any other job, or expectation of any other job on the last day. What would happen if you already had a part time role somewhere else that you'd been doing for years?