What To Do If You Receive A Severance Package

In the aftermath of a job loss, you may have worries about paying bills and attending to responsibilities in advance of finding a new job, and how your severance package will help you meet these needs. In many cases, these packages are a lump sum financial settlement provided by the company, and may be a standard payout for each terminated worker, or a personalized number based on a formula developed for the function of a large-scale discharge. Many people don’t realize that a severance package can be negotiated if you have the right kind of help and advice. A legal representative trained in negotiating severance may be able to help you get a larger settlement to help with your transition. You will need to inform yourself with the essential facts in order to better understand the process.

There is no statute requiring employers to offer a severance package to workers; however, many businesses do offer packages to staff members who are let go as a result of downsizing, lay-offs, or under certain individual instances. These deals are often offered as consideration in an indemnity agreement upon severance from the company. Because a contract must have legal consideration in order to be deemed enforceable, the company may have a worker sign an agreement not to sue or defame the company as a result of the terminating action.

The first thing you should do when receiving a severance package from your company is to have an uninvolved third party examine the details and documents of the offer. With the support of a lawyer, you can determine if the package offered by the company is satisfactory in terms of normal amounts based on your years of service, years of experience, and other mitigating factors. A lawyer can also explain your rights and responsibilities under any contracts you may be asked to sign in exchange for the severance package, and may suggest more aggressive compensation based on your personal factors.

You may be able to mediate a severance package even in cases where there is no plan offered as part of an employee agreement or an end of contract. While it is up to you to seek out compensation, and it may or may not be successful, it is a great strategic move to try and negotiate the terms of your termination proactively. Depending on the particular circumstances of your case, an attorney may be able to make a negotiation arrangement with the company on your behalf.

Offers of severance are very seldom set in stone by a provider. Often, the starting amount given by your management is offered after review from the in-house or separate legal team assisting in the layoffs. There are instances when the company representative will try to suggest that the offer is only on the table for a short period, or that the amount offered is the final sum available to the worker as settlement for the termination of work, but this is virtually never the situation. Behavior like this is meant to combat any objection to the termination or the offer, and avoid negotiations at a time when the company is striving to conserve cash through terminations.

When you get a severance package, do not take what is provided outright; you may not only leave cash on the table that you will require while shifting to new work, you may also discover yourself bound to contract clauses that are not in your best interest should you sign the agreement without having it evaluated by a competent attorney who is not connected with the corporation.