New Employment Agreement, Not Signing is Treated as a "Resignation"

[some_employee]

My question involves employment and labor law for the state of: MD

My employer issued a new employment agreement that contains a stricter non-compete clause, more elaborate arbitration rules, something called a "duty of loyalty" clause, etc. I already have an agreement we signed in 2006. The company has said that not signing the new agreement will be considered a resignation. Can I take the position that I would like to continue to work under the previous agreement that we both signed, and let them fire me if they must? Can I be forced to resign without showing any intent to actually resign?

[PattyPA]

You can take the position, but the employer has no legal obligation to agree with you.

In this economy, is it really worth losing your job over?

[some_employee]

In this economy with layoffs blindsiding people left and right, it may not be the best time to sign something that says you can't work in your field for two years after you leave your current job. Not everyone is prepared to either cover themselves financially for two years or suddenly switch careers.

I guess what I meant by my original post is that I am now confused about the word "resign". I know that you can resign formally with a letter or something, and you can resign through words or other actions in an informal way, but I always thought it had to be voluntary. Is it legal to start this employment relationship based on an agreement, and then change the agreement and make the employee resign if they don't like the new agreement?

If that was legal, I would think companies could do this instead of firing people to avoid severance pay/other liabilities, and could do it on a larger scale as a type of layoff figuring x% wouldn't sign. Then again, maybe that's my paranoia showing and there's other ways to prevent that ...

[Bubba Jimmy]

It sounds to me like your employer has taken the position that it will terminate the employment of any employee who refuses to sign a new employement agreement with new terms. It can do that unless your previous contract says it can't. Maryland is an "at will" employment state.

If you refuse to sign a new agreement, I would expect your employer and you to be bound by all of the terms of the agreement you signed in 2006. I would further expect that you might be entitled to collect unemployment compensation while you look for a new job, because it doesn't really matter whether the employer considers your termination to be a voluntary quit, the facts and circumstances surrounding your termination stand on their own. However, I would check out the rules for unemployement in your state to determine whether the employer's change of the circumstances under which they are willing to employ you would be considered sufficient cause for you to terminate and still be entitled to unemployment compensation.

If you are truly unwilling to work under the new agreement I would document in writing that I am willing and able to continue working under the previous agreement to establish that it is not a voluntary quit. It would then be up to the unemployment referee whether they consider your refusal of work to be reasonable.

[PattyPA]

Take the agreement to an employment law attorney and find out if the noncompete as written is even enforceable in your state.

[some_employee]

I see, sounds like the difference between a resignation and a firing is a little more nuanced than I thought. They certainly have every right to terminate my employment, and whether they consider it a resignation is really up to them, just like whether I consider it a resignation is up to me, and whether the person at the unemployment office considers me eligible for compensation is up to that person.

Thanks both for your help and advice.