Microsoft employees considering the buyout should check these health insurance rules before leaving their jobs

Microsoft employees thinking about taking the company’s buyout offer should first understand what happens to their health insurance and other rights once they leave. The US Department of Labor has laid out the basic rules for people who lose their jobs. Here is what they say.

Microsoft is offering voluntary exit packages to about 60,000 employees, roughly a quarter of its global workforce. Staff at the vice president level and below, on select teams in the US, Canada, India and the UK, can apply. Bloomberg reports that Xbox, Windows, Copilot and Finance are among the divisions taking part, while some staff, including those in data centres, sales and marketing, are left out. There is no age or tenure requirement.

The terms are said to be similar to Microsoft’s standard severance.


Eligible employees were emailed a link to their personal offer details on Monday. They have until the first week of December to decide.

Microsoft told GeekWire it expects far fewer takers than the roughly 30% who accepted its earlier retirement offer.

Microsoft buyout: What employees should check on health cover and job rights before leaving

When a job ends, the health insurance that came with it can end too. But some workers and their families have the right to continue the same group health plan for a limited period. This comes under a law called COBRA, short for the Consolidated Omnibus Budget Reconciliation Act.

Employers may also have to send employees certain notices about their rights under COBRA and under HIPAA, the law on health insurance portability. Workers who took leave under the Family and Medical Leave Act (FMLA) can look at a federal rule, 29 CFR 825.209(f), which explains what happens to health cover when employment ends.

The Labor Department’s note does not say how long the extended cover lasts. That depends on the plan and the person’s case. Employees should read the notice they receive and ask the company’s HR team before signing anything.

Workers who are out of a job through no fault of their own may get unemployment benefits, provided they meet other conditions. The money is meant as temporary help while the person looks for work.

The rules are not the same everywhere. Each US state runs its own unemployment programme within guidelines set by federal law, and the state decides who qualifies.

The Labor Department’s note does not say whether leaving by choice counts as “no fault of your own.” Employees should put this question to their state unemployment office before they decide.

Federal laws bar discrimination in most workplaces on the basis of age, race, colour, religion, sex, ethnic or national origin, disability and veteran status. Whistleblowers, and people who took part in a complaint under Labor Department laws, are also protected.

If a termination has nothing to do with these grounds, it is governed only by the private contract between the employer and the employee. Where a labour contract applies, that contract governs. So the paperwork attached to a buyout deserves a careful read.

Separately, the Veterans’ Employment and Training Service (VETS) looks after the job rights of veterans. Under a law called USERRA, service members who return from a period of military service have the right to be reemployed.