New York Employment Lawyer Blog

All New York severance packages are not created equal. I recently blogged about the importance of negotiating a severance package to reflect your needs and now want to delve more into some creative approaches to severance packages.

As a quick refresher, a severance package represents pay and benefits an employee receives when they leave a company. Not offered to every employee and often only offered in certain circumstances (laid off versus fired employees) severances packages should be as carefully thought out as any other aspect of an employment contract.

Here are some of my suggestions to making your severance package work for you:

• Benefits to cash: Converting your benefits to cash is a great option for those individuals that have other sources for getting their benefits. For example, if your company offers extended medical benefits but you can easily add onto your spouse’s insurance coverage, then requesting the cash equivalent of a benefits package is an easy way to make better use of this offer.

• New position: Have you ever considered consulting? Some companies simply cannot keep all their employees but still need their skills. Leverage your expertise and time with a company to carve out a consulting position that keeps some work coming to you while the more traditional employment position ends should be a no brainer.

• Smart money: Attorneys fees, tax-deferred payments and other financial issues associated with the negotiation and payment of a severance package can add up. You should have your employer foot the bill for this.

Making your severance work for you requires preparation and thinking ahead to what you will need when you are done working for a company. Keep in mind that in exchange for some less traditional concessions, your employer may want some things from you. Most commonly a confidentiality agreement or non-compete agreement may be asked for in exchange so be prepared to decide whether that is something you are willing to do. And if you get confused along the way, please give us a call.