Unfortunately, many employees only find out about the terms of a severance package when they’re laid off. This leaves workers with very little time to negotiate the offers of such a crucial contract.
Understanding the components of a severance package is crucial for employees even when they’re not about to be laid off or terminated. A well-crafted severance package can better ensure a smooth transition for departing employees if that time comes.
The basics of a severance package
Upon receiving notice of termination, employees often wonder about the duration of their employment before the actual departure. A common component of a severance package is the notice period, during which employees may be required to continue working or receive pay in lieu of notice.
Financial considerations are another critical element of severance packages. Employees are typically entitled to compensation based on factors such as years of service, position and contractual agreements. This financial cushion can provide support during the transitional phase.
Employee benefits within a severance package
Maintaining access to health benefits post-employment is often a crucial concern for individuals. A comprehensive severance package may include provisions for continued health coverage. This allows employees to bridge the gap until they secure new employment.
Employees also often inquire about the fate of their retirement benefits post-separation. This can offer clarity and financial security.
Legal considerations related to severance packages
Understanding the legal implications of a severance package is vital. Some employers may include non-compete or non-disclosure clauses in the package, restricting employees from engaging in certain activities or disclosing proprietary information post-departure.
Our firm provides legal advice to help ensure a fair and legally sound severance package. We will help you to negotiate the terms of an agreement which will typically include compensation substantially beyond what was offered by the employer (we handle this on a contingent fee based upon whatever increase we can secure beyond the present offer).
A well-negotiated severance package extends beyond financial compensation. It addresses the holistic needs of departing employees, providing a safety net during a period of transition. As you assess your severance package, consider seeking legal counsel to help ensure that your interests are well-protected.