When You Should Engage in Severance-Package Negotiations
Severance packages are offered or sought for a variety of reasons: they may be used to prevent an employee from working for a competitor, to ensure that an employee waives his or her right to pursue a legal claim against the former employer, or they may be used so that an employee doesn’t need to seek unemployment benefits. We specialize in employee contracts and termination.
What Is a Severance Package?
A severance package can include the following:
- Remaining regular pay
- Additional payments based on months of service
- Health insurance
- Life insurance
- Retirement benefits
- Stock options
- Assistance in searching for new work
These packages can be negotiated early on, such as when you first get your job, or later, such as when you are being terminated. Ideally, you would negotiate a severance package with your employer as part of your employment contract.
Having adequate severance arrangements in place as part of your employment contract is peace of mind for you and added job security. You can be assured that if anything happens, and you are terminated, you will have something to fall back on until you find a new job.
Who Should Seek Severance Packages?
A severance package is, unfortunately, not included in every job offer and contract. Most of the time, employees with high and valuable skills are the ones that will be offered a such a package, or will be in the position to negotiate one in the event they are terminated, or as part of their employment contract at a new job.
If you are in a senior position in your company or have skills that are of high value to your company, it would be useful to consider negotiating a severance package. Being an executive, or having skills that are valuable will give you more leverage when it comes to negotiating a package that is both adequate for you and satisfactory to your employer.
When engaging in negotiations with your employer, it is often wise to consult an employment law attorney who is knowledgeable about such issues. An employer may try to take advantage of you, especially if you are not seeking legal counsel.
The employment law attorneys at the Jordan Law Group have years of experience handling severance package negotiations. We are dedicated to securing a package that will give our clients security in the event they are terminated from their jobs.
For an initial consultation, we welcome your call to our office at (415) 459-9865.