Securing the Best Employment Severance Packages

Under U.S. laws, no legal requirement for a company to have a severance pay policy exists. Nevertheless, if a company happens to have a severance pay policy, such company must follow said policy. Normally, employers give employment severance packages to employees who are laid off because of circumstances such as downsizing, restructuring, or reorganization.

What are employment severance packages?

Employment severance packages consist of money, either in the form of a lump sum or that of a salary continuation for a specific period of time, and other benefits, i.e., continued payment of health insurance premiums, a pro-rated bonus, or outplacement services given free of charge.

Usually, employers require their laid off employees to sign Separation Agreements and General Releases in exchange for all or a portion of their employment severance packages. These agreements usually include provisions which ban said employees from suing and making claims against their former employers. Given such consequences, employees should be cautious in signing any Separation Agreement.

However, apart from the aforesaid agreements, it is possible for employees to negotiate procuring better employment severance packages. It is at this juncture where the services of a legal counsel specializing in labor relations can help employees protect their rights and interests.

If you’d like to know more about employment severance packages and about how we can help you secure a fair employment severance package for yourself, feel free to contact us today.