3 Features Your Severance Package Should Include

If you and your employer are parting ways, a severance package might be on the negotiating table. If this is your current scenario, make sure you don't get ahead of yourself. Avoid focusing solely on the value of the offer. When you fail to read the fine print, you could miss important restrictions that can affect your future employment endeavors. Careful review is always in order.

Owed Money Addition

Whether it's unused vacation time, credit card bills, or other expenses, always make sure this money is not being lumped into the severance package. While you can receive the payment for both as one lump sum, you don't want to sign away your entitlement to money that is due you, separate from the severance.

For instance, if your employer is offering you a $40,000 severance package, but you have $5,000 in work-related expenses, your severance needs to be increased to cover this cost. Otherwise, you will be left to pay these expenses on your own. Make sure the severance takes into account any owed money.

Non-Disparagement Agreement

Just as it is not okay for you to make disparaging comments about the employer to others, it's also not acceptable for the employer to communicate in this manner concerning you. It's wise to ensure your package includes a reciprocal non-disparagement agreement.

This agreement is especially important when looking for a new position where you will need to rely on the previous employer as a reference. Without this agreement, your previous employer could stifle your ability to gain a new role by providing unflattering or untrue information.

Detailed Benefit Structure

Detail is critical when it comes to a severance package, particularly when it comes to the benefit package being provided to you. Keep this train of thought in mind with everything from health and life insurance policies to access to employee benefit programs like a local gym membership discount program.

The more specific the data, the better you can understand how you need to plan going forward. Details should include any potential changes to your current benefits as well as a date of expiration. Make sure you have a clear understanding.

Remember that severance packages are negotiable. Don't feel that you must immediately accept what your employer is offering you. You do have the legal right to hire an attorney like Law Offices Of Timothy O'Brien to help formulate the best deal for your short and long-term needs and goals.