How do you secure a severance package?

Here are the key steps for negotiating an exit package:

Understand the components of a severance package.
Wait before signing paperwork.
Read everything carefully.
Get an expert opinion.
Understand your priorities.
Negotiate for more than money.
Decide on a reasonable request.
Leverage your success.

What should be included in a severance package?

A typical severance package includes both a severance agreement and severance pay. This is done to provide the employee with certain financial benefits (payments of money, medical coverage, etc.) in exchange for the employee agreeing not to sue or disparage the company. What is severance pay?

Can a company sue you for a severance package?

While most employees leave their employment without any legal reason to lookback and sue, providing a severance package to an outgoing employee ensures that the company can safely put away the relationship for good. Non-competition agreements in California are invalid and unenforceable. They have been, to some degree, for more than 150 years.

Do you have to offer severance to departing employees in California?

Neither the California Labor Code nor the federal Fair Labor Standards Act require employers to offer severance packages to departing employees. Instead, severance packages are provided by employers to accomplish a specific goal.

Can a C-Suite Executive get a severance package?

Sometimes employers offer severance packages because they are required to do so by the terms of the employment agreement with the employee. This is a rare perk that most often is provided only to high level C-suite executives (CEOs, Chief Financial Officer, Chief Marketing Office, Chief Operating Officer).

Can a company force you to accept a severance offer?

An employer may push a severance offer deadline in an attempt to pressure you to accept an inadequate severance package smaller than the one you are actually entitled to according to common law. You should also know that your employer cannot force you to accept a severance offer before leaving a termination meeting.

What to expect in a severance package for non union employees?

For non-union employees, severance benefits are typically two weeks pay for each year of service—up to a maximum of 26 weeks. As well as salary, companies may offer outplacement counseling. When a company has a formal severance pay policy, it will include: Purpose.