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What should your severance package include?

On Behalf of | Feb 18, 2021 | Severance Agreements

Few people are guaranteed a job in New Jersey. No matter how secure your job might appear to be, your company could announce a round of layoffs if sales start to drop. Fortunately, many employers provide a severance package that helps you support yourself and your family while you look for another job.

What should a severance package include?

Contrary to popular belief, you don’t have to accept the first severance package that your company offers. A employment law attorney could help you review the contract and negotiate for more favorable terms.

Severance pay is the most important aspect of a severance package. If you don’t know how long you’re going to be out of work, you need to be able to support yourself until you find another job. Even if you have another job lined up, a severance package still compensates you for the unexpected job loss. You could ask for up to a year’s worth of pay from your former company.

When you lose your job, you might also lose your health insurance. Your severance package might allow you to stay on your current health insurance while you look for another job. If your severance package doesn’t include a provision for health insurance, you might want to bring that up during negotiations.

Finally, you probably have vacation time and sick days that you never used while you were still employed. Your employer is obligated to pay you for any time that is earned and accrued in accordance with your company’s time off policy.  This should be over and above the severance pay you are offered.

How can you negotiate your severance package?

If your company is going through a rough patch, they might have no choice but to lay off some of their employees. You might not be able to keep your job, but you might be entitled to a fair severance package that compensates you for the sudden job loss. An attorney could help you negotiate the best possible terms and ensure that you get paid.