There are instances when workers leave the companies that employ them for various reasons. These employees might benefit from Employment Severance Packages which can help tide their expenses over until they find a new job.
Existence of Employment Severance Packages
A severance package is given to employees in cases where they had to be laid off because the company is downsizing. A severance package is given to show the company’s gratitude for his services.
Also, aside from getting retirement benefits, retirees are sometimes offered an employment severance package.
The provision of employment severance packages may be stated in the employment contract but the employer doesn’t have the responsibility of providing this benefit to all his workers who retired or have been laid off.
But once a severance package is stipulated in the contract, the employer is bound to pay reimbursements depending on the negotiation. Severance packages can also include other benefits such as:
• Retirement Benefits.
• Payment for Unconsumed Sick or Vacation Leave.
• Life, Dental or Medical Insurance Grants.
• Stock options
Condition of Severance Package
Before being qualified to receive an employment severance package, these conditions must exist:
• The employee has served the company for at least five years.
• The reason for separation is not included in the legal grounds of termination for an employee.
• The reason for the separation must not be criminal in nature.
An employee who has been terminated legally for his misconduct or any criminal action cannot claim severance benefits from the company that he works for.
Negotiations for the Benefit
The contents of the severance package would have to be negotiated by both parties. Once these benefits have been granted, the employee would have to sign an agreement which generally states that he is content with the severance package he received and won’t be asking the company for more in the future.
But there are employers who try to take advantage of their client’s ignorance of other possible benefits so they would just offer lesser benefits and make the worker sign the agreement.
Workers must be aware that they can consult legal experts who can give advice on whether or not the agreement between him and the company is advantageous on his end.
Lawyers can also represent his client and negotiate with the other party to make sure that they will get the best deal possible.
In order to receive a good severance package, the employee must:
• Gather Supporting Documents. The employee must make sure that he has all the documents that would ensure he is eligible to have the benefits he is claiming.
• Avoid Being Involved with Another Company. Being employed by other companies while negotiations are yet to be reached can lessen the chances of the worker to have higher severance benefits.
Employees must keep in mind that negotiation for Employment Severance Packages is important because once they sign the agreement, they cannot ask the company for anything else that might be due to them.
Log on to our
website to help you understand
employment severance packages. Call us toll free for immediate legal assistance.
