Can severance pay be negotiated?
severance pay be negotiated
Typically, an employee who is laid off or fired receives a severance package to help them financially while they search for a new job. Severance packages may include a lump sum payment, unused vacation time or sick leave pay, and severance benefits like outplacement support or extended health insurance coverage. While the company can legally compel you to sign a waiver of your legal rights in exchange for severance pay, you can often negotiate a more favorable agreement.
It’s important to determine what you want and why prior to entering the negotiation process. If you’re unsure of your position, you can ask a New York City severance pay lawyer to review your case and provide guidance on the best approach. A lawyer can also ensure that the final severance pay package is aligned with your employment contract.
The type of leverage you have will vary, but the most effective strategy is to make your case on a rational basis. Using statistics or examples of other comparable cases is one way to demonstrate the value of your severance package request. You can also provide details of your accomplishments at the company that have positively impacted the business. If you’re a top performer with a great track record, you can use this as an argument for increased compensation.
Can severance pay be negotiated?
Another factor to consider is whether or not your severance package includes outplacement support, coaching, or other services that can help you find a new job. Many employees choose to decline these options and instead ask for a lump sum payment of the cash equivalent.
Some severance agreements also require employees to sign non-disclosure and/or non-compete agreements in exchange for severance pay lawyer. While the company cannot compel you to waive your legal rights, it can have a negative impact on your ability to obtain future employment. If you feel that your severance agreement is not in your best interests, you can seek remedy through outside channels such as filing an unemployment claim.
When it comes to negotiating severance packages, the best approach is often to remain calm and professional throughout the process. If you become argumentative, your employer is more likely to view your request as unreasonable. You can even suggest that you’d be willing to accept a lower severance package in return for other terms, such as a reduction in the duration of a non-compete or a removal of a non-disparagement clause.
Before beginning your severance package negotiation, read the entire agreement and take detailed notes. You can also bring it to an expert who can clarify the language, locate loopholes, and identify areas for improvement. It is also helpful to compare the severance packages offered by other companies to ensure that yours is fair.