Company turnover requiring "voluntary resignation" paper

My fiance just returned to work after a week long vacation. He was told that the company he works for no longer exists and that they are now a new company. The president and vice-president changed positions under the new company name. In order to work for this new company, they want him to sign a letter of voluntary resignation from the old company name and to sign a new company contract which places his employment under a probationary status that excludes him from benefits and states that he could be terminated at any time during the probationary period without recourse to unemployment compensation. He told the employer that he would not sign the papers without thoroughly reading them first, and was promptly sent home. He does not want to sign the "voluntary resignation" paper, because he did not resign. He also does not want to sign the new contract because of the probationary status and the deprivation of his benefits during this probationary period. What are his rights under these circumstances? Can the company legally make his employment contingent upon signing a voluntary resignation, and take away the benefits he had accrued?

That would depend on your location and whether or not he signed an original contract of hire, in my opinion. It would also depend on the conditions stated in that original contract, if there was one. Unfortunately if you live in an "at will" employment state and if there was no original contract in place, he could have been terminated at any given point in time for any (non discriminatory) reason. Again, unfortunately as well, those are the terms of his new contract as well, it appears from your post .. and his decision as to whether or not to accept them.

Have you called your local labor board? His employer may be following the "letter of the law," but I'd be curious as to the labor board's opinion of that type of business practice. While he may not have cause for legal action, he may have other options available there. Based on the information obtained from the department of labor, it still may be well worth his while to consult with an employment attorney in your area. Sorry, not a great deal of help here, except to volunteer the actions I'd take were I in this position. (It never hurts to ask.)

Interesting post. Please let us know how this turns out. Good luck.