When negotiating an employment contract, it’s important to look toward the future. While you hope you remain a part of the company for many years to come, you never know what could go wrong.
A contract that includes a severance package will give you peace of mind, as this puts you in position to receive additional compensation if your employment is terminated.
When negotiating the terms and conditions of a severance package, either upfront or after you’re notified of your termination, keep these things in mind:
- Before you sign anything, make sure you understand the terms and are in line to receive the compensation you deserve
- Obtain a release of rights, which protects you against any claims of wrongful behavior, such as harassment
- Pay close attention to provisions, such as those outlining why you may not be eligible to receive severance pay
There are several factors that typically impact the amount of severance pay:
- The circumstances resulting in your termination, such as layoff, downsizing or employee misconduct
- The amount of time you worked for the company
- The financial condition of the company
If you have an agreement in place to receive a severance package, review this immediately after receiving word of your termination. Once you better understand what to expect, you can discuss the finer details with your employer.
In the event that your employer fights back, such as by stating that you don’t qualify to receive your severance package, don’t wait to learn more about your legal rights. You don’t want to miss out on money that’s rightfully owed to you.