Outplacement Support Guideline

Purpose

To provide a consistent framework for offering outplacement support to employees whose position is eliminated or whose employment ends through no fault of their own, helping them transition to new employment.

Scope

Applies to eligible employees affected by a workforce reduction, restructuring, or position elimination, as determined under the Separation of Employment policy and any associated severance/salary-continuation program.

Guidelines

Selecting a provider. HR (or a designated Talent/People function) selects and manages relationships with one or more outplacement service providers, and coordinates which provider is used for a given situation.

Level of support by employee group — the appropriate level of outplacement support generally varies by role level. A typical structure:

GroupTypical support
Individual contributors / non-exempt staffModified support: orientation, resume preparation, an interviewing-skills workshop, and periodic follow-up from an outplacement counselor. Generally does not include ongoing office-facility access.
Exempt / professional staffFuller support: access to outplacement office facilities and counseling/job-search support, generally continuing until the individual is placed or for a defined period.
Senior leadership / executivesHandled case by case, with support tailored to the individual's situation and approved by HR leadership.

Set your own program's fee structure, provider fee caps, and duration limits based on current market rates and budget — these change often enough that they should live in an internal program document rather than this guideline.

Interaction with severance releases and WARN/mini-WARN notice

Outplacement support is often bundled with a severance or salary-continuation offer that requires the employee to sign a release of claims, and/or is triggered by a workforce reduction large enough to require advance notice under law. Both touchpoints carry their own legal requirements that are separate from — and must not be confused with — the outplacement support itself:

  • Release of claims (OWBPA/ADEA). If a severance package conditioned on signing a release is offered to an employee age 40 or older, the Older Workers Benefit Protection Act requires specific terms for the waiver to validly release an ADEA age claim — including a minimum consideration period (at least 21 days for an individual termination, at least 45 days where the release is offered as part of a group termination/exit-incentive program), a 7-day post-signing revocation period that cannot be shortened, and additional disclosures for group terminations (for example, ages and job titles of those selected and not selected). Have Legal review any release tied to outplacement/severance before it is offered.
  • WARN Act / state mini-WARN notice. A workforce reduction large enough to trigger the federal WARN Act (generally, covered employers with 100+ employees must give 60 days' advance written notice of a plant closing or a mass layoff affecting 500+ employees, or 50-499 employees if that is at least 33% of the active workforce at the site) has its own notice obligations that are independent of whatever outplacement support is offered — offering outplacement does not satisfy or shorten a WARN notice requirement. Several states (for example, California, New York, and New Jersey, among others) have their own "mini-WARN" laws that are more stringent than the federal law (broader coverage thresholds, longer notice periods, or added severance penalties for non-compliance) and must be checked separately for any location where a reduction is planned. Loop in Legal before finalizing timing or communications for any layoff that may approach these thresholds.

Responsibilities

RoleResponsibilities
HRDetermine eligibility; select and coordinate outplacement providers; provide guidance to managers.
ManagersConsult HR when a position elimination is being planned; support the affected employee through the transition.
Employee Relations / People teamArrange the specific outplacement engagement and monitor its use.

References

  • Separation of Employment policy
  • Salary/Severance Continuation program (where applicable)
  • WARN Act / state mini-WARN compliance guidance (maintained by Legal)

General information, not legal advice. Treat this as a drafting starting point, not a finished policy — employment law varies by jurisdiction and changes often, so have a licensed attorney tailor it to your situation before you rely on it.