In many states in the US, employers can fire an employee at will. Knowing that you no longer hold a position or have financial stability can be stressful. While you might be great at negotiating salaries and benefits during the hiring process, dealing with a severance package is tricky. A severance package outlines what you would get when you leave the company. You can always buy a guide to negotiating severance agreements, but if you need more, consult an employment attorney who works and presents employees for bespoke advice. Below are some essential details about dealing with the situation.
The need for severance agreements
First and foremost, you must know that severance agreements are not mandatory. Employers usually offer these packages to parting employees as a goodwill gesture. At times, it could be about remaining competitive in the industry, while in other cases, the employer may want to eliminate the scope of a lawsuit. There are several aspects of a severance agreements, and you can usually discuss medical benefits, insurance coverage, assistance with finding a new job, and other perks. Most companies give a time period of 21 days for employees to sign the agreement, with a small window to revoke the decision.
Take the right steps
During the termination meeting, you may feel anxious and concerned, but remember, you don’t have to sign the severance agreement now. Take time and meet an attorney to review the document. If you have evidence concerning discrimination or harassment, let your employment lawyer guide you further. Lawyers know the state laws that govern such packages and will check whether the pay is worth accepting. In the meantime, start looking for new jobs.
Understanding critical aspects
Remember that you cannot negotiate every aspect of the severance agreement, which is why your lawyer is important. The pay is usually one to two weeks for each year worked, but it could be more for executives and those who hold higher positions. If you are getting a single lumpsum amount, it could mean paying more taxes, and if that’s the situation, you can ask for payments over a period of time. According to the Consolidated Omnibus Budget Reconciliation Act (COBRA), you are eligible to continue the health insurance policy you had with your existing employer for 18 months.
No one wants to deal with a severance package alone. Your best bet is an attorney who is on your side and will represent you during the process.
