Losing a job can be a devastating experience, especially if you enjoyed your job and did not see the separation coming. Along with the other worries you must suddenly deal with, you may be asked to meet with your employer and discuss a severance package.
A severance package or agreement is a written document you sign agreeing not to pursue any legal claims against your employer in exchange for a sum of money.
Is a severance agreement required?
The Fair Labor Standards Act (FLSA) does not require employers to offer employees a severance package. However, many employers choose to offer employees a severance package if they are long-time employees or for various other reasons.
While you might be tempted to immediately sign a severance agreement because you are panicking about losing your income, you should not sign it before carefully reviewing all its terms and ensuring that they are fair to you.
A severance package usually contains important information about many different topics including non-compete agreements, continuation of benefits, payouts for any used time off and any remaining obligations you may have to your employer.
How to handle the termination meeting
Here are some helpful tips to remember when you are offered a severance package.
During the termination meeting, you are likely going to feel a wide range of negative emotions including anger, fear and sadness. You might have trouble focusing on what is happening.
As difficult as it may be, remain calm and focus on what you are told. Take notes if you are able. If not, write down everything you can remember about the meeting immediately afterwards.
Ask questions
You deserve an answer as to why you are being terminated. Do not be afraid to ask your employer the reason if you are not given one or if the one you are given is vague and unsatisfactory.
However, do not argue with your employer about the termination or the reason. By this point, you are not likely to get your job back. But you need to fully understand the reason for your termination.
Perhaps your termination is part of a mass layoff and not individual to you. You may still ask why you were chosen for termination.
Try to gather information about others who were terminated as part of the layoffs. Determine if they share certain characteristics, such as gender, age or race.
The amount of severance pay
Severance pay is generally calculated based on the length of your employment. A common calculation is your normal weekly rate of pay multiplied by the number of years you were employed at the company. You may be given the pay as one lump sum or through weekly or bi-weekly payments.
Ask your employer about the next steps at the meeting. You should not leave the meeting with any lingering questions about what to expect. Learn when and how to expect your pay, when you will receive information about alternate health benefits and when and how you can exit the building.
Do not sign the agreement right away
Never sign the severance agreement at the meeting itself. You should be given a reasonable amount of time to review the agreement before signing it. If your employer tries to coerce you into signing the agreement at the meeting, this is in violation of your legal rights.
Once the meeting is over, having your severance agreement reviewed by an attorney can help you learn if it is in your best interest to sign. Alan C. Olson & Associates is ready to step in and fight for your rights.
