Severance Pay in New York
Severance pay is a misunderstood subject in New York and around the country. Companies are not legally required to pay a departing employee severance, but companies often do to make the transition smooth. Severance pay (or severance packages) is a custom that has developed. Employers are often willing to pay a departing employee severance pay to prevent law suits and the disruption of business. But there is no legal right to severance pay unless you have an employment contract that says you do.
The amount of severance a company is willing to pay is based on several factors: (1) if you have strong relationships with people or companies that are important to your employer, (2) how long you worked for the company, (3) how much you made, (4) if you could sue your employer for employment discrimination, and (5) the company's severance policy. Another key factor is the employee's ability to negotiate. Employees often take what the company initially offers without even trying to get more. Often, an employee can increase the amount simply by asking. It depends how you ask and what reasons you can give, but, if handled correctly, an employee may be able to substantially increase the severance package. The Ottinger Firm has helped many people negotiate better packages.
