Offered a job buyout? A lawyer's 3 steps before you sign

When Microsoft offered buyouts to around 60,000 employees, it put a big question in front of a lot of people: take the money and go, or stay. Employment law attorney Craig Levey of Bennett & Belfort in Boston shared three steps for anyone facing a similar offer, whether at Microsoft or anywhere else.

Who a buyout suits

Levey says a buyout can be a decent deal if you were already planning to leave soon, such as to retire or take another job. It can also make sense if you fear your job is at risk. A layoff may come with no severance offer at all. He notes that a buyout program often signals more layoffs ahead.

It may be a poor fit if you planned to stay for many years. You would be taking a small sum in the big picture and then have to find a new job in a tough market.

Step 1: Understand the offer

The offer usually comes from HR or legal. It typically includes a release of legal claims and a no-rehire provision. It may also bar you from speaking badly of the company. Levey says to be sure you fully understand it, and to hire an employment lawyer if you do not. Questions to ask:

• How much will I be paid, and is it a lump sum or installments?
• When will the payments arrive?
• What benefits do I get?
• When would I have to leave?
• How much unused paid time off will I receive?

Also ask whether you would qualify for unemployment benefits. Check your state's rules, since each state is a little different.

Step 2: Gauge your job security

Try to work out whether you would be laid off soon anyway if you say no. Levey says HR or your boss usually will not know or will not tell you. Instead, read the signals. Look at past emails or letters from the CEO. Ask whether the company is in financial trouble, has done several rounds of layoffs, or pushed return-to-office rules that led people to quit. Trusted colleagues may help.

Microsoft told Business Insider that future staffing will be based on business needs and priorities. A Microsoft executive said there is a lot of desire not to do big layoffs, but added, "Never say never."

Step 3: Know your leverage and your deadline

Negotiating a higher payout is hard when you are one of tens of thousands. The exception, Levey says, is if you think you were targeted because of age, gender or race, or in retaliation for reporting something illegal. In that case, talk to an employment lawyer in your state.

Watch the deadline to accept or reject. If you plan to accept, consider speaking with a tax advisor or CPA about the tax effect, especially with the year ending in a couple of months.

The bottom line

A buyout is a contract. You can accept it or reject it, and you do not have to sign. If you feel forced out or singled out, Levey advises talking to an employment lawyer about your rights.