A candid Reddit post detailing a difficult workplace exit has ignited widespread discussion online, as an employee disclosed that they were let go after completing a 60-day performance improvement plan (PIP) and were provided a final choice: resign voluntarily or be terminated.
The individual, who worked in the finance sector for almost a year, shared their experience on the r/jobs subreddit, looking for guidance from professionals and others who had experienced similar turning points.
What Happened During the PIP?
According to the post, the employee was positioned on a 60-day PIP that included bi-weekly check-ins with management. Previous reviews were encouraging, with the manager admitting progress and improvements. However, at a later meeting, new performance challenges were raised, changing the direction of the process.
Shortly afterward, the employee was called into a meeting with human resources and informed that their employment would be ending, regardless of earlier progress.
The Options Presented by HR
HR explained two possible paths forward, each carrying identical benefits but different long-term implications.
Benefits under both options were:
- Pay through the end of the week
- Payout of unused paid time off
- Health insurance coverage through the end of the month
However, there was no severance provided in either scenario.
If the employee opted to resign, they were told they could frame their departure as leaving to pursue fresh opportunities. Choosing termination, on the other hand, would make them eligible to apply for unemployment benefits but with the caveat that future employment checks could reference termination due to performance.
The Employee’s Dilemma
Unsure which choice would be smarter long-term, the Reddit user posed many questions to the community about references, unemployment eligibility, and whether resigning really provided any advantage.
They later returned with an update, writing:
“Update: Thank you all for your responses. I appreciate the conversations had. To answer some questions I was here for a year, the industry is finance, and I ended up taking the termination and applying for unemployment. I have started applying for jobs and have a side gig that should help keep me afloat. I do feel down and defeated but anyone in the same situation just remember this is a blip in the road, we will be back soon!”
How Reddit Responded
Several commenters were direct in their advice, urging the employee not to resign simply to save the company money on unemployment obligations. One user wrote:
*“Termination….their just trying to trick you into not paying unemployment. They will say the same thing as a reference either way… I think most companies have a policy of just providing start and end dates and maybe rehire status.”
Others highlighted that resignation under pressure may still qualify for unemployment in specific jurisdictions:
“I don’t understand why everyone thinks ‘resigning’ will cost them unemployment… Check to see if being told ‘quit or be fired’ matter – because in many that is absolutely not ‘voluntary resignation’.”
Another commenter emphasized the realities of current job market:
“I would make them fire me and roll the dice on the ‘could’ portion of them informing future employers you were terminated for cause. The job market is tough right now and that unemployment could keep you afloat until you find a new role.”
Some reactions also touched on unconventional reference approaches, sparking debate about ethics in hiring practices.
FAQs:
Q1. What is a performance improvement plan (PIP)?
A PIP is a formal process used by employers to address performance challenges. It generally outlines goals, timelines, and regular reviews.
Q2. Does a PIP always lead to termination?
Not always, but several employees report that a PIP can signal a possible exit. Outcomes differ depending on company culture and management intent.
