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to accept the severance package. 99.99% of the time when employees are advised that they "must immediately improve" their performance and/or attitude, and especially if it involves a "performance improvement plan", you're going to be fired anyway, they're just covering the required bases and laying the groundwork for it. The psychological aspect alone makes it very difficult to continue working for that employer, since you're spending every moment at work worrying about everything you say and do and if it's good enough and what the reaction will be, etc., etc., and that makes it pure hell to get up and go to work every day. Been there, done that.
It's just not worth it when you're going to be terminated anyway. And chances are very strong that, when you're given a "performance improvement plan" or told to "immediately improve", they're planning to terminate you anyway, they just have to legally cover that base so that they can say they followed procedure. And if you're terminated, you're left with nothing. That is why it would probably be better if she just cut her losses and took the severance package. My one major concern about that is that there's nothing in writing regarding the severance. Can your wife ask if they can put something in writing? If they won't, then that's a red flag indicator that they're not serious about the severance.
If she takes the severance, she will also likely have to sign papers promising not to sue the employer for wrongful termination. If she doesn't sign, she won't get the severance. That's very wrong, I know, but, unfortunately, employers have you over the barrel in such situations, which is right where they want you; that's why it's usually standard procedure.
It's also very important that she not burn the bridges when she leaves (I say when because it's obvious she'll leave one way or the other, termination or resignation). However tempting it may be, it's VERY important that she not give in to that temptation. A co-worker or supervisor will likely be needed for a future reference, and she won't get one if she burns all the bridges and goes out in flames, telling everyone exactly what she thinks and feels. Also, a prospective employer will be contacting this employer to get their side of the story, and if she's conducted herself with dignity and professionalism they will be far more likely to note that and at least not attempt to jeopardize her chances of future employment too much.
Also, you might be thinking that unemployment is a possibility. The problem with that is that, since her employer would likely dispute it, it would take longer than usual for unemployment to make a determination and there're all kinds of ridiculous hoops you have to jump through for them in such situations. And the payments are an absolute joke. If she does get the severance, two months of severance will likely be more than she'd get in six months of unemployment, IF the determination was in her favor (I say if because unemployment agencies in most states are much more likely to side with the employer regardless of the circumstances).
I know how infuriating and frustrating all of this is, believe me, I've been there. It's why I hate working for other people now and would prefer to work for myself or own a business, if I could ever get the circumstances right to do so. Employers hold most of the cards, they always have, and most of us have to put up with it because we don't want to end up starving under a bridge somewhere so we have no choice. I have a business on the side writing customized resumes and cover letters, so if your wife decides to resign and take the severance, I'd be glad to see what I could do in that regard. Hang in there!
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