Severance Package Hide Required Fields For Free

Continuation of insurance benefits, assistance finding another job, and other perks can also be negotiated as part of a severance agreement. Typical severance packages offer one to two weeks of paid salary for every year worked.

Severance packages may include salary continuation; vacation pay; continued, employer-paid period of benefits coverage; employer-paid COBRA premiums; outplacement services; counseling and resume workshops; and more.

The severance agreement may have a confidentiality clause, but if the employee refuses to sign, the employee may go public with the contract. Often, employers offer severance packages even when they believe they can defend against future legal action.

Can you get the employer to increase its offer of severance? (6-12 months of severance pay is typical for executives and potentially higher for CEOs).

What should a severance package include? Your severance package should include information about your financial compensation under the agreementfor example, how much you will be paid and how it will be paidas well as how you will be compensated for your unused vacation and sick time.

There's no requirement under the Fair Labor Standards Act that mandates companies provide severance following a layoff. However, organizations that do have a severance policy will usually include it either in the employee contract or offer letter you signed before joining the company, or in an employee handbook.

Step 1: Articulate Your Goals. Step 2: Identify Compensation. Step 3: Determine Specific Waivers, Releases of Claims, Acknowledgments and/or Contractual Assurances to Include in the Agreement. Step 4: Arrange to Secure Employer-owned Property. Step 5: Draft the Agreement.