There are no prohibitions against negotiating with your employer for a higher pay or for better benefits. Included in these benefits is the right of the employee to negotiate for a severance package at the end of the employment period. The law only imposes minimum standards that the employers should follow in order to protect the rights of the employees at work. Hence, if the agreement results in higher benefits to the employees then the law will gladly step back and let the mutually beneficial work arrangement continue and prosper.

When Severance Package is Not Legal?

Severance package agreements are agreements that are entered into between an employer and an employee for providing the employee with a set sum or amount of money and/or other benefits in case the employment ceases to exist. However, these packages are not legal under two circumstances:

• Violates employment and labor laws

  The agreement should not violate any labor law provisions or should not be used to circumvent any employment regulation. If you are forced to enter into an agreement by your employer to take on less pay or to exchange some of your leave benefits and other benefits generally provided by your employer to lesser benefits, then bargaining your basic rights will be an illegal contract, and hence, the severance package is invalid.

• Used as means of illegal termination

  – If you are being forced to sign a severance package in order for your employer to be able to terminate you, then the use of the severance package is illegal and void. In this case, you can file a claim for damages against your employer.

Who May Enter Into a Severance Agreement?

Severance package is not only limited to full time or permanent employment. Any type of employment can be the beneficiary of a severance package benefit. Even if you are a temporary or casual employee there is no impediment in negotiating a package with your employer especially when your employer is more than willing to provide you the additional benefits.

Severance Agreement as a Matter of Right

As a general rule, severance package are optional as there is no law requiring your employer to give you one. However, if part of your compensation package when you started with work includes a severance package, then the package becomes part of your compensation. Accordingly, your employer cannot later say that the package is optional because it already forms part of your compensation at work. If your employer later refuses to give you one or negotiate with you for one, you can file a claim for employment and/or labor law violation.

How to Negotiate Your Severance Benefits?

It is never a good idea to try and negotiate with your employer on your own, especially where your future compensation is involved. To make sure that you get the best compensation you deserve, seek help from expert employment lawyers who have vast experience in negotiating compensation packages for you and your family’s future.