Sometimes,
a company doesn’t outright fire someone, but they make decisions that
essentially “push” an employee out. There are well-documented legal reasons why
a person would be entitled to resign for “good reason” (also called, “for
cause”) that are often found in employment contracts. The good reasons include:
- Adverse change in title or responsibilities. If the Vice President of
Marketing was demoted to the Head Burger Flipper, the person would have a good reason
to leave. They wouldn’t have to
leave, but the role is clearly no longer what they signed up for. If they
decide to stay, however, they can’t use this as a good reason later on.
- Adverse change in compensation that does not affect other
participants at the same level. If the management team cuts the individual’s
salary by significant amount, but does not take similar action against others
at the same level.
- Relocation of the company more
than 50 miles from its original location. The person may not be able to manage the
commute. Extending the commute puts an unfair burden on the employee.
- Adoption of the Slicing Pie Model after a fixed split is already in place. The Not everyone will be open to Slicing Pie, those that aren't should be able to leave the company.
- Death or disability.
Leaving a company for good reason is essentially the same as
being fired for no good reason. The employee gets to keep all his slices. The
company can offer to buy the slices back in an amount of cash equal to the
outstanding slices, but the employee should not be obligated to sell. He should
not be asked to agree to a non-compete. Again, the multipliers impose
consequences on the company, forcing them to be careful about the decisions
they make that impact employees. But, they can ask for a non-solicitation
agreement as described above.