Introduction to Terminations/RIFs and Severance Packages
Employment terminations can be a challenging time for employees, both emotionally and financially. In such situations, a severance package can act as a safety net, providing financial assistance and benefits as you transition to a new job or career phase. However, it’s crucial to remember that you might have room to advocate for yourself and negotiate better terms, if a package is offered.
Common Components of Severance Packages
- Monetary compensation: Often calculated based on years of service.
- Benefits extension: This can include health, dental, or retirement benefits for a specific period.
- Outplacement services: Assistance in finding a new job, including resume building and job searching services.
- Non-compete clauses: Restrictions on joining competing firms or starting a similar business.
- Legal clauses: Provisions preventing you from taking any legal action against the employer.
Strategies to Negotiate Your Severance Package
Knowing how to effectively engage in discussions can make a significant difference in the benefits you receive.
Do Your Research
Research your company’s past practices concerning severance packages. Understanding past precedent can give you a foundation upon which to base your negotiations.
Approach with Empathy, Not Entitlement
When initiating a conversation, frame it in a way that emphasizes mutual respect and understanding. Instead of demanding, explore how you can discuss your severance terms that would be fair to both sides.
Enumerate Your Contributions
Highlight your contributions, achievements, and the value you’ve added to the company. It can help justify your request for a better package.
Consider Non-Monetary Benefits
While monetary compensation is vital, consider other elements that might be of value to you, such as a longer benefits extension or specific outplacement services.
Legal Considerations During Negotiations
If you choose to negotiate your severance terms, it’s crucial to be aware of legal ramifications.
Consult an Attorney
Before engaging in any significant negotiations, consider retaining legal counsel. An experienced attorney can guide you on what’s standard, your rights, and ensure you’re not unknowingly waiving essential privileges. We’re also quite scary, which can help you get more!
Be Mindful of Deadlines
There might be stipulated timelines by which you need to accept or contest the terms of your package. Stay cognizant of them for obvious reasons.
Let Our Legal Team Guide You in Negotiating Your Severance Package
While a termination or RIF can be an unsettling period, understanding how to effectively negotiate your severance package can provide a cushion and support in the transition. Contact MSB Employment Justice today to learn more about negotiating your severance package.
