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Severance Negotiations

A common misconception is that employers must provide employees with severance pay. However, unless provided by contract, employers may terminate employees at-will without severance. Nevertheless, numerous employees are offered severance packages upon termination. Whether it's because an employer is doing it out of the goodness of their heart, out of fear of a lawsuit, or simply for peace of mind, any employee must be conscious of the terms of any such severance before signing such an agreement.

A few of the things to consider when negotiating a severance include: (1) the amount of consideration offered (typically the amount of money); (2) the circumstances leading to the termination; (3) any other benefits or stock options; (4) the scope of any release; (5) any claims or issues that have been raised; and (6) restrictions.

If you have been offered a severance and would like to consult with an attorney, contact our firm for a free consultation.

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