Legal Guide About Severance Package

Severance Package

While some job seekers may be aware that they can bargain for pay & advantages when they are hired, others may not be aware that they have this option when they leave an organization. A severance agreement, which specifies the financial parameters under which the employee will depart the company, is typically provided by employers.

In order to negotiate a good deal, you must take into account your needs for support in terms of money and benefits, how you will behave in negotiations with the employer, and whether you should seek legal counsel. Read on to learn more about the Guide to Negotiating Severance Agreements.

Arranging Your Severance in Advance

The thought of leaving before the axe falls may be alluring if there are rumors of layoffs going around your office. However, sticking around might put you in a better position to file for unemployment benefits and get paid severance. Regardless of whether you anticipate being fired, get ready in advance. To ascertain your financial needs, evaluate your available resources and your essential spending. Make a list of the main advantages you wish to discuss. Review the severance policy of the company and try to find out what your former coworkers have received.

Steps You Should Take

In the event that you are fired, make notes during the termination conference and resist the urge to sign the severance agreement right away. Allow time to go over and consider the document. Generally, you will have seven days after the deal is signed to change your mind, after which you may have 21 days to accept it.

You may choose to hire an employment law attorney after reading the agreement through in its entirety. This decision should be made in particular if you have proof of discrimination, if the contract is lengthy (more than one page), or if the package’s wording is overly general or complex. Find out from the attorney which states have laws governing severance agreements and whether there are any special clauses about payment amounts and timing. In order to find out how long it might take you to find a new job at the same position and pay, you should also speak with the local placement and recruitment agencies.

You will also need to plan on what to negotiate in your package. There are several factors you can deal with in your severance package, such as: 

  • Severance Pay
  • Company Perks
  • Unemployment Insurance
  • Departure Announcement
  • Outplacement
  • Pension Plans
  • Retirement Stocks

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