Severance packages help employees cover their costs and support their families after a non-voluntary job loss. There are generally two times when workers might negotiate severance packages with their employers.
Frequently, negotiations occur during the hiring process or when a worker receives a promotion. Those clarifying the terms of a new employment arrangement often request severance as part of that process. Otherwise, they may need to negotiate severance terms after the company terminates their position. Such scenarios generally leave workers with less leverage than negotiations that occur at the beginning of a new job or position.
In either situation, a professional requesting severance may have specific expectations and needs. What forms of support are typically available in a severance agreement?
Continued pay
Severance packages typically provide workers with ongoing income after their termination. That income could come in the form of a lump-sum payment or regular payroll distributions. The severance agreement typically outlines how long the payments last or the number of weeks of pay that the workers should receive upon termination.
Continued employment benefits
Employees often rely on their employers for health, dental and vision insurance. The continuation of insurance eligibility is a common component of modern severance packages. Employers may agree to continue providing key benefits to workers for a set amount of time after they lose their jobs.
Professionals may find it difficult to negotiate the best possible terms for their severance packages when managing a matter on their own behalf. Working with an attorney while setting the terms for a severance package can help professionals optimize their protections in the event of a sudden job loss.