Severance Package Hide Circle For Free

If you want to work for a competitor, if you have valid legal claims against your employer, or if you anticipate being unemployed for a significant length of time then it may be in your financial best interest to turn down the severance money and refuse to sign the release of claims.

When you sign a severance agreement, you agree to specific clauses contained within.Thus, if you feel that your termination was unlawful, but your severance agreement states that you cannot bring any unemployment discrimination claims, you likely cannot sue your employer.

The offer, in and of itself, does not create an irrevocable power of acceptance on the part of the offeree. Therefore, a severance offer can be revoked at any time, including within the 21-day period, prior to formal acceptance by the departing employee.

A lump sum payment is a one-time payment in full of the amount of severance pay that you and your employer have agreed to. A lump sum payment gives you immediate funds to invest or use. If you receive a lump sum, your other fringe benefits will usually cease as of the date of the payment.

The severance pay offered is typically one to two weeks for every year worked, but can be more.The general practice is to try to get four weeks of severance pay for each year worked. Middle managers and executives usually receive a higher amount. Some executives, for example, may receive pay for more than a year.

If you are serious about maximizing your opportunity for a better severance package, you should consider hiring an experienced severance attorney to review your severance agreement, evaluate your employment history and help you negotiate your severance package.

Severance packages may include salary continuation; vacation pay; continued, employer-paid period of benefits coverage; employer-paid COBRA premiums; outplacement services; counseling and resume workshops; and more.