If you’ve recently been terminated and received a severance agreement, it may be for a number of reasons. Perhaps your employer is seeking to avoid lawsuits. Maybe there are issues that they wish to address through non-disparagement clauses or similar strategies. No matter what the reason may be, most employees generally have the upper hand. With a better understanding of what’s typically included in severance and what to ask for, you can properly negotiate terms to walk away from your former employer satisfied.
What Is the Typical Severance Package?
Knowing how to negotiate severance when quitting or being terminated begins with knowing what is offered in the typical severance package. The average severance package may include:
- One to two weeks of paid salary for every year you worked with the company
- An extension on the healthcare coverage that you had under your employer (be careful—you may now have to pay both your premium and the amount previously covered by your employer)
- Outplacement services to help you secure work
- Specific items regarding your retirement or pension plan and stock (this is extremely important to discuss with your severance attorney)
With all this in mind, the severance package you receive might be different from the severance package that someone else receives even at the same company.
What Should I Ask for in My Package?
Now that you know what is offered in the typical severance package, it’s your turn to negotiate with your former employer.
Depending on how long you’ve worked at the organization, asking for more severance pay might be something that your employer would agree to, especially if your termination is a result of legal issues or other problems that they’re wishing to eliminate or avoid by ending your employment. You should also ask about your retirement and any stock that you own. Some contracts might seek to force you to sell back that stock, even if that’s not in your best financial interest.
Finally, diving deeper into the various clauses (non-disparagement, non-compete, etc.) can give you a better idea of how your severance agreement might be beneficial to your employer rather than to you. Double-check and ask to eliminate any clauses that could affect you legally or financially later on.
Negotiate Your Severance Package With Confidence
What is the typical severance package, and what should you be asking for? The reality is that it varies greatly from state to state, and this complexity can make it difficult for you to understand your rights and walk away with what you deserve. If you’re looking for how to negotiate severance when quitting or being terminated, Severance Lawyers is one of your best resources. Our severance law specialists have over 13 years of experience in severance review and negotiations. We can either equip you to negotiate directly with your former employer, or we can negotiate on your behalf for the best possible outcome.
Protect your best interests by booking a consultation today.