subject: Misconceptions About Employment Severance Package by:Mark Dacanay [print this page] There are so many terms to use: laid off, terminated, fired, downsized or let go. It does not matter, which term your employer may use, the bottom line is that you just lost your job.
Thousands of things are simultaneously running through your head. You could be angry, worried and even frustrated at the same time. However, depending on the circumstances surrounding the situation, most likely you are entitled to an employment severance package.
An employment severance package refers to pay and benefits given by an employer to an employee when they leave their employment with the company, either by the choice of the employee or the company.
An employment severance package will include the employee's remaining regular pay and may include some other benefits like:
Additional compensation that is based on years of service
Compensation for unused sick and vacation leaves
Compensation in lieu of required notice period
Medical or dental insurance
Retirement benefits for employees aged 40 and up
Stock options
Assistance in searching for new work
Company policies that relate to employment severance packages are usually found on the company's employee handbook.
A lot of employees do not understand what they are and are not entitled to when it comes to severance packages.
Here are some of the most common misconceptions:
There is no law that requires companies to give employment severance packages.
This is actually true. However, companies have reputations to uphold, and a disgruntled employee will give negative feedback when asked about their company. That is why companies try to negotiate packages that are agreeable to the employee and have them sign a Separation and Release Agreement.
At will employees do not get employee severance packages.
At will employees are people hired for unstated duration and not a fixed amount of time. This means an employee can leave or be fired anytime as well. However, there should be legal reasons for termination and has to go through a lawful process. Being at will employees does not remove your right to get a fair severance package.
Employment severance packages are non-negotiable.
HR will probably offer you an amount as soon as you finish your exit interview and have you sign a Separation and Release Agreement. Do not accept immediately. Go home consult with a Human Resources expert to know what the fair amount is. If needed, you can consult an employment lawyer as well.
Employees can negotiate their own employment severance package.
Of course you can!!! But are you getting a fair amount? Probably not. Employees tend to underestimate their value to the company. An expert in human resources and an employment attorney can help you decide whether an offer is fair or not.
Employees do not need an attorney to understand Service and Release agreement terms
For your protection, all Service and Release agreements requires you to consult with a lawyer to check and review the terms before you sign it. If done by yourself you may be agreeing to something you don't understand and sign to a restrictive covenant.
To further help you, you may seek legal help from an employment attorney with background in Human Resources.
