I believe so. You should really check your employment agreement, as the severance differs according to staff level (the example was from a Manager employment contract). I’m not a lawyer, but my understanding is that violations as stated in the contract are things such as independence, CE requirements, not stealing firm property, etc. Professional violations would not include performance issues (I mean what exactly would you have violated?? The so-called “high performance” requirement? I’d like to see that documented and stated as a professional requirement somewhere). The only thing I can think of that would really fall under “professional violation” would be working a second job or something related to being a CPA, etc–meaning NOTHING PERFORMANCE RELATED. Also, I would assume professional violations would be something intertwined with the others (legal, ethical) such as signing off of bad/fraudulent financial statements or taking bribes, gifts, etc. from clients. If it does fall under this category, why isn’t it explicitly written in there?? I mean, everything else is in there, non-compete, what constitutes Firm intellectual property, etc. However, if this becomes an issue with A LOT of people who were let go w/o severance, you can bet they’ll try to wiggle out of this mess somehow. I’d like to see how it would play out legally, in a PUBLIC forum.

I was “counseled” out and given my severance (although they did try to push a lesser amount than I was owed initially–bet they didn’t think I actually READ any and everything I was required to sign there). You can find your employment agreement on kcurve under your personal documents. If not, request a copy from HR SSC. They have copies of everyone’s employment agreement.

Side note: It’s totally disgusting how they aren’t giving people what they are entitled to as stated in a contract THEY require YOU to sign. It’s just another example of how PwC is trying to get away with side-stepping the whole “lay-off” issue.

The phrase at PWC these days is “HIgh performance culture.” Not sure what exactly it means, but I assume it’s what they say the person doesn’t live up to when they let them go.

Have heard of two more firings in tax, but of course, that is only people I hear about via my friends, there are probably others. One was a senior, the other a third-year associate. Wasn’t surprised by the associate–he was older and I think they were really starting to hammer him for nitpicky things in his feedback at mid-year.

Got at least one “goodbye” e-mail sent out to the whole office from someone in Audit–don’t know the person or how they came to leave the firm.

Thanks so much. As you know, I am limited in giving detail if I don’t have hard docs and info like what you have provided. I am also limited in that if you send me confidential docs directly, I may not be able to legally repost them. But if you post them in comments first, you are not jeopordizing my ability to continue to inform others.

I will repost this info in a new post focused on the PwC approach. I received an update on the PwC wage and hour class action in California also today from Bill Kershaw. If anyone in California is interested in that case or has info that can help them, please call Bill at 916-448-9800.

Francine

I’m tired of coming to the comments section in search of something tangible that would help people who feel they have been wrongly terminated or treated abhorrently while employed at BIG 4 and finding vague numbers on lay-offs in vague groups, vague statements about legal recourse, etc. So, I decided to post this, hoping it may help those already let go or those soon to be departing from PwC come the end of the FY09 review process.

VERY IMPORTANT FOR EVERYONE AT ALL FIRMS, PWC OR NOT, TO KNOW WHAT YOUR ENTITLED TO SHOULD YOU BE “PERFORMANCE COACHED OUT”!!!!!!

This is the actual verbiage from a client service manager level employment contract at PwC:

“5. Termination of Employment.

a. Termination by the Firm. If your employment is terminated by the Firm for reasons other than professional, legal, ethical or Firm policy violations, you will be provided under the Firm’s Notice/Severance Policy for Certain Employees (the ‘Severance Plan’) with: (i) one month’s notice, if you have bee employed for more than six months but less than two years; (ii) two months’ notice, if you have been employed for more than two years but less than five years; or (iii) three months’ notice, if you have been employed for five or more years. The Firm reserves the right under the Severance Plan to pay your base salary in lieu of continued employment for any or all of the applicable notice period.”

I was told by a partner that the Feb 08 manager/director “reduction” provided 6 weeks severance to those individuals across the board. 6 WEEKS??? Talk about a random number (seems like A LOT of things at PwC are pull out of thin air these days). I’m assuming a director would be due a better, if not the same, severance per their contract. And, I’m pretty sure that not all these people were employed for less than two years (I can actually think of one director I know who most definitely wasn’t). And, I’m also pretty sure these people were all taken by surprise, meaning who the hell would know off hand what’s in their employment contract when they’re being fired AND who the hell would probably think to look at it in the few hours they give you to pack up your sh*t and “separate” from the Firm.

PwC, I’m sure knowingly bets their “HOUSE” that most of their employees will not know what they’re entitled to so they offer their random 6 weeks severance off the bat. If you don’t know what you’re supposed to get, good for them. If you do, well, they won’t believe you (HR that is) so make ‘em dig up your contract. Or, call PwC SSC (HR Hotline 866-470-3000) to get it yourself. If you’ve been let go, wouldn’t hurt to see if they gipped your or not. I’m assuming they would have to provide a copy of it to you, current employee or not, and if they don’t I’m pretty sure you know why.

From what I recall, staff agreements probably provided for the 6 weeks but it may have been staggered by years of service as well for these levels. Maybe they were generous with Associates/Sr. Assocs but my hunch is they weren’t!

If you weren’t given what you were due per your employment contract, it may be worth looking into suing the Firm for breach of contract. I’m not sure what the statute of limitations would be or if it even is a valid claim but weren’t the AIG “Bonus Guys” threatening the same (on a much bigger scale of course)? Wouldn’t it be something if this turned into another big scandal for PwC…

FM does a great job with her site, providing valuable insight and content, while not specifically naming names, at least pointing to the Firms whose practices are pure CRAP. But let’s not make FM shoulder all the burden. I hope people who read this site will at least provide what info they can, being as specific as you can while keeping your anonymity, to help others who may be struggling with some sort of blatant BIG4 injustice.

To the PwC Partners who read this blog, get your (sh*t)House in order. To those still employed and either loyal on the partner track or just happy to be out of the unemployment line, remember you’re just a number away (3 or 4 take your pick) from being “coached out.” Know where your true loyalties should lie. To those already out, if you have any information that is TANGIBLE, why not share it?? You don’t have to name names or be too specific, but really, you’re out, so what do you have to lose?

@69 Closet 4s??? Hmmm, maybe someone should take a look at HR or the parters giving HR directives? How is it that HR or the partners don’t know the standard severance for each level? Really, given that this coaching out is even occurring mid-year now there, how many tag team HR/Partner conversations will it take before you can “Retain” (pun intended, dweebs) that info?? Perhaps, the closet cleaning should start there??

@FM, thanks for your blog! Also, might be helpful for some to re-post this under the DT layoff section and/or your What I’d Do post….

Just curious as to what makes one a ‘closet 4′ as opposed to a 3 or better in your office? Bringing home an engagement with a $50k gain as opposed to $70k? Having 107% utlilization as opposed to 110%? Missing 3 hrs work because of a medical emergency? Actually discovering an exception that couldn’t be swept aside? Those seemed to be among the “factors” in my office..

I’m curious… I heard the term “performance culture” while I was at PwC but never heard a good definition of it from a PwC perspective. Care to elaborate in terms of fit, etc. ?
Francine

I have some Illinois Mega Millions lottery tickets I haven’t checked yet…

Actually I really like the pool analogy. You might consider expanding that to a guest post on career path in Big 4 and all the sharks, “snickers bars”, cold water, dirty leaves, inflatable rafts full of hot air, and surface scum you can run into along the way.

Francine

“Too bad you have a full time job or you could write for free for me.”

Yes, too bad we are not both independently wealthy so we could write sketches for the Accounting Comedy Circuit.

Also, I haven’t forgotten about that guest blog on Engagment Management. It’s in process, I swear. It’s just that dang “real life” that keeps getting in the way(including as you noted a full-time job, plus the whole family and children thing). Also I started outlining a technical book (in my specialty field) this week, because I had too much idle time. But it’s coming. Trust me. Missed deadlines? Now I feel like an accomplished author!

Also the alter ego thing? Great minds, etc.

– Tenacious T.