Microsoft buyout offer: Should you take the payout or risk future layoffs? A legal expert explains what to do before signing

Microsoft buyout offer: Taking a buyout may seem like a good way to leave Microsoft with money in hand. But employees considering the offer must weigh that payout against the security of keeping their jobs and the challenge of finding work elsewhere.

Around 60,000 Microsoft employees were offered a voluntary buyout and according to employment attorney Craig Levey, the decision depends largely on where workers stand in their careers and whether they believe staying at the company is the better option.

In an interview with Business Insider, Levey said the offer could suit employees already planning to retire or move to another job. Those hoping to remain with Microsoft for years may have more to consider, particularly given the difficulty of finding new employment in the current job market.

Could turning down Microsoft's buyout be a risk

Levey highlighted, Buyout programs can sometimes signal that more layoffs may follow, although that doesn't mean further cuts are certain.

Employees can look at previous layoffs, company communications & Microsoft's financial position to assess their situation. Trusted colleagues may also offer insight into what is happening internally.

While Microsoft has previously said it wants to avoid large layoffs, acknowledging that it can't rule them out, but the company said future workforce needs would depend on business priorities.

Read the agreement before accepting the Microsoft payout

The money is only part of the offer. As buyout agreements may include a release of legal claims, restrictions on returning to the company and clauses governing public comments about the employer.

Employees should check the payment amount and schedule, benefits, departure date, unused paid time off & eligibility for unemployment benefits. State rules differ so workers should review the requirements where they live.

So anyone unsure about the agreement should consider consulting an employment attorney before signing, a tax adviser or certified public accountant can also explain the potential tax implications of the payment.

Can Microsoft employees negotiate a better offer

Getting a higher payout may be difficult when a company is offering buyouts to such a large group, Levey said.

However employees who believe they have been targeted because of age, gender/ race or faced retaliation after reporting illegal conduct, should consider seeking legal advice. Because an attorney can help assess their circumstances and explain whether there may be grounds to negotiate.

Employees also should keep track of the deadline for accepting/ rejecting offer.

The right decision depends on the employee

Someone ready to retire may welcome the chance to leave with a payout. An employee who wants to stay at Microsoft for long term may decide that keeping their job is worth more than the offer.

Levey's advice is to understand the contract, consider risks of staying/leaving & seek professional guidance when needed. So employees can reject the offer because they don't have to sign agreement they don't understand.