The Big Three Severance Pay Points
People call us almost daily asking for help with their severance pay agreements. Many of them just want to know how to handle the matter themselves because they don’t want to hire a law firm. If you want to handle your own severance agreement, here are three things you need to understand.
1. You Have No Legal Right to Severance Pay
Companies are not required to offer severance pay. There is no legal formula or standard for severance pay. Companies can pay whatever amount they want or none at all.
2. Your Company Wants Something From You
Companies offer severance pay for one reason only – to get you to sign a waiver giving up your right to sue them or cause problems. They are paying you to leave quietly.
3. Reality
Today, in this recession, most companies take a hard line with severance pay offers. Often you face a take it or leave it situation. Typically companies will not materially alter the agreement unless you have a genuine legal claim. If you have a real case of employment discrimination or sexual harassment of other claim, you can substantially increase the severance pay out. Most people, however, do not have a case and without real leverage it is tough to negotiate an substantial increase in severance pay.
