QUESTION
Does not signing a non-compete constitute voluntary resignation?
Asked on Mar 04th, 2015 on Employment Contracts - North Carolina
More details to this question:
The company I work for was recently acquired and the new company is forcing us to sign a non-compete. The 3 year non-compete is unreasonable and I will not sign it since it prohibits me from working in an industry I've had my career in for over 10 years.. They company says that not signing it is deemed voluntary resignation. Wouldn't this classify as termination of my employment and therefore I'd be eligible for severance?
1 ANSWER
I feel that it would be termination of your employment, which could be relevant to your right to unemployment benefits. However, you have no right to severance unless you have a contract which provides for it, in which case it would be the contract's terms which would define your rights. For example, if you have a contract providing that any employee who is terminated shall receive two weeks' severance pay, the relevant definition of "terminated" would be whatever the contract provided. If the contract provided that refusal to sign a non-compete constituted a resignation, you would have no right to severance under that contract.
Answered on Mar 04th, 2015 at 1:50 PM