If you have been let go from a job, there is a chance you may have been offered a severance agreement. While many people will take these agreements without complaint, the fact of the matter is that you can negotiate them just like you would any other contract. But how exactly can you negotiate a severance agreement, and how can you get the most out of it?
What is a Severance Agreement?
A severance agreement is a type of contract that is offered to employees who are fired from a job with an existing employment contract, or for employees who lose their jobs in a mass layoff. The agreement lays out various terms and conditions related to the agreement, including any compensation the employee may be entitled to, what benefits they retain after losing their job, and what restrictions they may have after being fired. It may also include provisions like a non-disclosure agreement preventing them from discussing confidential information they learned during their employment, or a non-compete agreement preventing them from working with a competitor or starting up a competing business.
What is Involved in Negotiating a Severance Agreement?
In some ways, negotiating a severance agreement is similar to any other type of contract negotiation. Both sides come to the table with their own respective objectives for the negotiation, and hash out the terms based on their respective bargaining positions. As a general rule, the better prepared you are for the negotiation, the more favorable the terms are likely to be.
How Can You Prepare For a Negotiation?
To best prepare yourself to negotiate a severance agreement, you should make sure to forward any relevant communications or documents related to your employment status to an external e-mail address. This will help you to preserve evidence and build your bargaining position. You should also keep a journal of any important events that occur, such as private conversations or hostile actions taken by your employer, so you have a record for later.
What Can You Get in a Severance Negotiation?
When negotiating a severance agreement, you have a lot of potential options for what you can get out of the negotiation. In addition to arguing for better pay, you can include other terms like allowing you continued access to your company’s healthcare plan, getting assistance finding new work, or other benefits. The better prepared you are, the more you will be able to potentially negotiate for.
How Should You Approach a Severance Negotiation?
In general, it is best to treat a severance negotiation like any other contract negotiation, including being prepared to haggle for what you want. Instead of treating your employer’s offer like a certainty you cannot change, you should consider it as a lowball offer, which you should counter by asking for more than you actually want. That way, you’re much more likely to come out of the negotiation with everything you wanted, and might even get a little bit more if everything goes well.
What Should You Do?
If you have recently been fired and have been offered a severance agreement, or believe you may be laid off soon, you should speak to a lawyer with experience handling employment law matters. They can help you negotiate a severance agreement and ensure you get the best possible outcome for your situation. The sooner you call, the sooner they can get to work for you.
Steven Mitchell Sack, the Employee’s Lawyer, is a New York employment lawyer with more than 45 years’ experience handling the many aspects of employment law. His new book, “Fired!: Protect Your Rights & FIGHT BACK If You’re Terminated, Laid Off, Downsized, Restructured, Forced to Resign or Quit,” is available in hardback, and contains valuable advice on dealing with employment and labor law issues. To purchase the book, feel free to contact Steven Sack at 917-371-8000 or visit the website at legalstratpub.com. To inquire about a legal matter, please feel free to contact attorney Steven Sack at 917-371-8000 or stevensackatty@hotmail.com.
