Rule for voluntary severance regarding not signing a new contract

[Guest]

Hi there, hope someone can shed light? My employer has a voluntary severance scheme upcoming and one of the rules for eligibility is: "must not have already signed a new contract with another employer". If a hypothetical new job is to start after any voluntary severance notice period (i.e. after the present employment/severance contract ends) then what business is it of my current employer if I managed to secure another job and sign a contract with them before signing up to the VS scheme rather than after? Any opinions welcome!

[PallasAthena]

I can't comment on the law but I assume the business logic is that they don't want to pay out VS to people who have already committed to leaving. Which, from a commercial point of view, seems reasonable. Why pay money to employees who are going anyway?

[atticus]

I am guessing that your employer is offering terms that it considers generous, to compensate for a period of unemployment. If you have a new job lined up, you may have 'mitigated' your losses.

The terms you describe are commonly used in this scenario.

[Guest]

Thanks for the responses. All valid. I suppose my point is, what business is it of theirs whether I have got something lined up, or, whether I will have to spend several months in fear looking for another job? Is it fraudulent to not let on?

[PallasAthena]

If the employer makes it a condition of applying for VS that you must disclose if you have received and accepted another job and you falsely declare you haven't when you have in order to receive VS you aren't entitled to under the VS scheme rules I'd say that's fraud, wouldn't you?

You'd need to review carefully the detailed terms of the VS scheme.

[atticus]

It is their business for the reason given in my earlier post. If you sign a document making an untruthful declaration or warranty, you may face legal action for the return of the money. It has happened.

[Guest]

Thanks for the replies. I haven't signed anything with my current firm or potential new employer yet.