You must first understand what a severance package is in order to make an educated choice. An agreement that offers specific benefits upon your termination exists between you and your employer and is known as your severance package. It basically provides you money in return for your signature on a release, waiving any claims you might have against the employer or business. But chances are, your employer will put up a deal that benefits them rather than you.
You must ask a severance lawyer to examine your documents and, if required, negotiate them on your behalf if you do not think this is fair. Additional benefits like life and disability insurance and access to company vehicles, laptops, and cell phones are all possible offers from employers. Some even help transitioning employees find new opportunities by offering outplacement services. Read on for more guide to negotiating severance agreements.
What to negotiate in a severance package?
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Severance Pay
Usually, one to two weeks of severance pay is given for each year of employment, but this can go up. Talk to your (former) employer about any financial hardship that may result from losing your job. Seeking four weeks of severance pay for each year of service is standard procedure. Executives and middle managers typically get more money. For instance, some executives might be paid for more than a year.
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Retirement/Pension Plans and Stock
The state and the employer determine what happens to your stock plan, pension plan, and retirement plan. Get a copy of the policies, then go through them with your lawyer.
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Outplacement
Numerous employers offer outplacement services. Select the service yourself and request that it stay with you until you find another job. Indicate what services—such as one-on-one counseling, retraining, a phone, an office, or administrative support, you will require from the outplacement company.
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Announcement of Departure
Attempt to draft a recommendation letter and a mutually agreed-upon announcement of your departure. Request to write the documents yourself, and be sure to highlight your most significant achievements. Please affix the letters to the contract.
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Company Perks
Finally, ask your employer to confirm in writing whether you are allowed to keep any company property, like a laptop. If you have had any other benefits, consider expanding the usage of the company car or your employer-sponsored health club membership.
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Unemployment Insurance
For unemployed workers, the Federal-State Unemployment Compensation Program offers temporary financial assistance. But as per state law, you have to have lost the job without any fault of your own. The benefits, which are taxable, typically last for 26 weeks, although a state may decide to prolong them in times of high unemployment. Make sure your employer accepts your claim for this compensation.
