5 Common Severance Package Mistakes to Avoid

Whether you are temporarily or permanently employed, you never know what will happen to your employment status. While you may be happy and content today, things could take a turn for the worse and you find yourself leaving a job abruptly.

It could also be that the company you have been working for is downsizing and you are one of the employees who have to be let go. In some cases, the working environment may get to a place where you feel it has become untenable to stay on.

Whatever circumstances may have led you to leave a job, one way or another, you may receive severance pay. While this is not a legal stipulation in most countries, most companies prefer paying severance pay rather than face the alternative of drawn-out legal proceedings with disgruntled employees.

There are a number of severance package mistakes that you should avoid if you ever find yourself in this situation.

1. Not Understanding That the Law Does Not Require It

Your employer is not legally bound to pay you severance pay if you get enough notice. However, severance pay in lieu of notice is the standard practice everywhere.

2. Believing the Assumption That Temps Do Not Get Severance Pay

Even if you are employed as a temp employee for a predetermined duration and you can leave whenever you want, if you are terminated or laid off illegally, you should press for severance pay. It is never a question of if you should get severance pay, but how much you should push for.

3. Assuming You Have No Leverage to Ask for Severance Pay

Whatever reason your employer gave for letting you go, you still have leverage. You deserve a severance package. No employer wants to deal with negative publicity or complaints from a past employee if they can avoid it. This is your leverage. If the employer dithers about paying you severance pay, let them know you have the option to sue. Chances are that they will pay you and just let you fade away.

4. Not Seeking the Services of a Lawyer

A severance lawyer will help you figure out what kind of severance package you are entitled to, not what your employer is offering. An employment lawyer has experience dealing with cases similar to yours. They know what a good severance package looks like. They will also help you understand what structure of a severance package you should sign up for.

You could be seriously underestimating your value to the company if you decide to plead your case without a lawyer. There are just too many potential pitfalls of pursuing a severance package without an employment lawyer, especially if the offer is unreasonably low.

5. Failure to Negotiate

Some employees are in a hurry to sign a severance pay agreement. They assume that there is no room for negotiation. This is a huge mistake. The first offer is never the last offer. Don’t be tempted to take the check your employer is handing you. Scrutinize the agreement and let them know you need some time to think it over. The truth is that they cannot withdraw the severance pay offer, even if you press for more. Unless your employer is extremely generous, always negotiate a severance pay offer before you take the cheque.

Some employers will not give you the severance package that you deserve. In most cases, what may look like a good offer may be much lower than what you are really worth. Before you sign on the dotted line and accept the offer, it is wise to contact an employment lawyer to go through the agreement first.