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Although companies are not required to offer severance packages, many choose to. An employee who believes his employment may end soon should be prepared to negotiate the best deal possible.
To do this, an employee should review relevant documents such as an employment contract, employee handbook, communications, or other documents that may provide insight into how a potential severance package might be structured. For example, the parties may have provided for this in an employment contract or the company may have a policy that dictates severance pay.
Severance benefits vary in amount and type, depending upon, among other factors, the employee’s position, the company’s size and financial well-being, and the circumstances surrounding the employee’s departure. Possible severance package benefits include: money reflecting base salary for a particular time period, bonus money or commissions, stock options, payment for unused vacation time, renegotiation of a non-compete agreement, and positive future employment references. In exchange for a separation agreement, an employer typically requires a departing employee to release any claims against the company. Thus, if an employee believes that he has potential claims that may be more valuable than the proposed agreement, the employee could use this factor as leverage in his negotiation and/or could consult with an attorney to discuss other options.
Keith Clouse, a Dallas employment lawyer, regularly negotiates separation agreements for departing employees. For assistance in negotiating a severance package, contact the employment lawyers at Clouse Dunn LLP at info@cdklawyers.com.
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