Three Reasons Why Your Severance Agreement Should Be Reviewed By a Lawyer
An employee who is leaving a position—whether on their own or after being laid off/terminated—may be offered severance. Severance pay is not required by law. According to data cited by Kiplinger, somewhere between 30 percent and 61 percent of American workers who leave their job are offered some form of severance pay.
Severance negotiations are complicated. At Poulos LoPiccolo PC, we are committed to helping employees negotiate the most favorable possible terms for their severance pay. Here, our New Jersey severance agreement negotiation attorney highlights three reasons why your severance packages should be negotiated by a lawyer.
- Your Lawyer Can Help You Understand Your Rights and Responsibilities
A severance agreement is a contract—and it is often a complicated one with nuanced, technical language. Any severance agreement will grant the (former) employee certain rights while also imposing certain responsibilities/restrictions on them. A New Jersey employment lawyer can break down the terms, ensuring you comprehend what you are agreeing to and what you are potentially waiving. For example, some severance agreements may include confidentiality clauses that restrict what you can share. Your lawyer can explain the implications of such a clause.
- Your Attorney Can Help You Negotiate for Additional Compensation
Often, the initial severance offer may not reflect the maximum compensation that you have an opportunity to receive. A New Jersey employment attorney can assess the offer and negotiate on your behalf to increase the severance pay or include additional benefits. Doing so is particularly important if you have been with the company for a long time.
Note: When you sign a severance agreement, you will almost certainly be required to “release” all potential claims that you have against your employer. In other words, you must give up the right to sue your employer for employment law violations as a condition of receiving severance. A lawyer can ensure you are being properly compensated for forgoing this option.
- Your Lawyer Can Help You Identify Other Potential Benefits
Severance packages are often centered on direct financial compensation—such as a lump sum payment or additional weeks of pay. With that being said, you can also get more creative with your severance agreement. Beyond the basic severance package, there may be other benefits you can negotiate. A New Jersey Employment lawyer can review your situation to identify potential benefits such as extended health insurance, outplacement services, a positive recommendation letter, or even stock options that you might not have considered. For example, if you are relocating for a new job, your attorney might negotiate relocation expenses as part of your severance package.
Speak to Our Monmouth County Severance Negotiation Lawyer Today
At Poulos LoPiccolo PC, our New Jersey employment has extensive experience representing clients in severance negotiations. Have questions about severance negotiations? We are here to help. Call us now or contact us online now for your completely private, no obligation case review. We provide legal representation to employees in Monmouth County and throughout all of New Jersey.
Source:
kiplinger.com/personal-finance/whats-in-a-severance-package
