how to contact an attorney employemnt termination severance package

At the Law Offices of David C. Holmes, we review severance packages for employers and employees alike to make sure that our clients are being treated fairly. Contact our firm by phone at 713.586.8862 or online to schedule a free initial consultation.

Full Answer

Do I need a lawyer for severance package issues?

Yes, it is extremely important to have the assistance of an experienced workers compensation lawyer for any severance package issues. It is essential to consider how a severance package may affect your legal rights and your ability to bring a claim against your employer.

Can my company force me to have my severance agreement interpreted?

Generally, your company cannot force you to agree to have your contract interpreted under some other state’s law. However, you are allowed to agree to this if you are individually represented by an attorney in negotiating the terms of your severance agreement.

Can my employer cancel my severance pay?

A: Generally, employers can cancel or change their severance policies at any time. Nonetheless, you may be able to establish a right to severance pay if your employer promised it in any of the following ways: You and your employer have a written or oral employment contract stating you will be paid severance.

How do I negotiate my severance package?

The details of the severance package as outlined in the company policy or employment contract, if any. An employee is always encouraged to obtain the services of a severance agreement attorney for negotiations regarding their severance package.

How do you communicate with severance?

How to Deliver the Severance Agreement to Outgoing StaffStep One: Provide Time For Consideration. ... Step Two: Provide a List of Competitors for the Non-Compete Agreement. ... Step Three: The Release of Waiver. ... Step Four: Understand the Special Rules.

How do you negotiate severance after termination?

How to negotiate your severance packageUnderstand 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.More items...•

How do I write a letter asking for severance pay?

I will continue to be a professional, and I believe we can make this a smooth transition for both our parties, but there are a few basic demands that I need you to meet: 1) I need a severance package. 2) I need benefits until I have secured other employment. 3) I need all my vacation paid out.

How do you argue for a severance package?

Do your research before negotiating. Consider what other employees have received as a severance and consider how long you may be looking for other employment. Remember that you can negotiate benefits such as continued health insurance and assistance finding a new job in addition to severance payments.

What is a generous severance package?

A generous severance package might include: Pay. It is standard to be paid for any accrued vacation time and also to be offered an additional lump sum, usually two weeks of pay for every year at the company.

How much severance should I ask?

The general practice is to try to get four weeks of severance pay for each year worked. Middle managers and executives usually receive a higher amount. Some executives, for example, may receive pay for more than a year. If your lump-sum severance payment is considerable, it could push you into a higher tax bracket.

Do you get a severance package if you get fired?

In most cases, you will be awarded a severance package if you are laid off. The amount you receive will more than likely depend on your length of service, job title and salary. Some companies may provide a monthly salary based on the years you have worked.

How do you know if your severance package is fair?

An employee's tenure is an important factor in assessing severance. The others are age, position, re-employment prospects and court precedents. The ability to find a comparable role is the most important reference point. The main objective is to allow the dismissed employee sufficient time to find a comparable job.

How do you ask for an exit package?

Here are some steps to follow for how to negotiate a severance package when quitting a job:Read your employee handbook. ... Determine if your company has a standard severance package. ... Talk to former coworkers. ... Think about how you want to be paid. ... Consider talking to a legal professional. ... Prepare for your exit interview.More items...•

When must severance be paid?

Severance pay must equal at least one week's pay for each completed year of continuous service. Previous employment with the same employer, but broken by periods of less than one year, is still regarded as continuous service (unless there was a previous retrenchment).

How is termination pay calculated?

To calculate the amount of severance pay an employee is entitled to receive, multiply the employee's regular wages for a regular work week by the sum of:the number of completed years of employment; and.the number of completed months of employment divided by 12 for a year that is not completed.

Do you lose severance if you get a new job?

If you are making the same or more money in your new position, your earnings at the new job will effectively “cancel out” your severance pay. This happens the day you begin earning money in your new role.

What is severance pay?

Severance pay is usually referred to as the combination of compensation and/or benefits that is given to an employee leaves a company.

What is a severance agreement?

The severance agreement is the set of documents that you are required to sign in order to receive the severance pay.

Why do employers offer severance packages?

The most common reason employers offer Severance Packages is because it wants to end its relationship with the employee—forever. Providing a severa...

What is in a typical severance package?

While no severance agreement is exactly alike, they all generally contain the following provisions: general release of claims, confidentiality agre...

When should you negotiate your own severance package?

While we believe it's always wise to consult an attorney, if you're comfortable with the severance pay and benefits you're receiving or just don't...

When should you hire a lawyer to negotiate your severance package?

If you're not comfortable with the severance package being offered, and want to maximize the severance pay, then an experienced employment lawyer c...

What is a severance agreement?

The severance agreement is the document or set of documents that you are required to sign in order to receive the severance pay. The severance agreement is usually several pages long and often contains various parts, including a release of all legal claims, confidentiality agreement, and non-disparagement agreement.

What is a severance package?

The term “Severance Package” usually refers to both a severance agreement and severance pay, however it is also used to refer to either one of those individually. A typical severance package includes both a severance agreement and severance pay.

What is section 10 of the severance package?

Section #10: Finding the Right Attorney to Negotiate Your Severance Package.

Why do employers offer severance packages?

The most common reason employers offer Severance Packages is because it wants to end its relationship with the employee —forever. Employees who have been wrongfully terminated, harassed or who have experienced wage theft can wait to sue their former employer for up to four years.

Why did Jennifer's manager retaliate against her?

Her manager had retaliated against her after she reported to the manager’s supervisor that he was committing fraud against one of the company’s customers. The company offered Jennifer a severance package with a confidentiality agreement. Unsatisfied, Jennifer attempted to negotiate a better package.

What are the risks of negotiating a severance package?

Beware of the risks of negotiating your own severance package. You should be aware of the risks, however, of negotiating your own severance. One risk is that you will fail to understand the true value of any potential case you have against the company.

What is considered severance wages?

In order for the payment to be considered severance wages, it must meet the following requirements: The payment is made according to a company plan or policy; The plan or policy provides for payment to employees who are terminated for specific reasons, e.g., job elimination, reduction in force, closure, etc.;

What is severance package negotiation?

With employers, severance package negotiation is all about who has to the most leverage. How do you determine who has leverage? The starting point is understanding – with the help of an employment lawyer’s representation – all of the strengths and weaknesses in your case. For example, do you have an overall good performance history? Are you limited by a valid employment contract? How long have you been working with the same employer? Are there any other issues beyond severance pay that should be addressed, such as discrimination or workplace harassment.

Who will help you determine a fair severance package?

During the consultation, the employment lawyer will help you answer the above questions to determine a fair severance package before you sign the severance package.

Why is it important to sign a severance package?

If your employer has given you a termination letter and severance package, it is important to only sign it after speaking with an experienced employment lawyer. As employment lawyers, the vast majority of severance packages we review offer employees compensation that is much less than what the employee is legally entitled to receive from a termination of employment. The reason for this is simple – employers want to minimize the employee’s severance payout.

Why is it important to retain an employment lawyer?

It is by far the most effective way to level the playing field with your employer to achieve your goals, by creating a strategy and to keep your eye on the ball during severance negotiations.

What to do before severance negotiations?

You need to gather all of the facts and documents related to your employment situation before you begin your severance negotiations with an employment lawyer. It may be helpful to think about your employment history, including all positive and negative moments, and save all agreements/policies you were ever given or signed from your employment. Also think about your performance during the course of your employment, and create a timeline of events ( e.g., dates, names, titles and anything you can think of that is relevant to your employment situation).

What is a fee when we negotiate?

We negotiate on your behalf when retained. Our fee when we negotiate is a percentage of the monetary improvement we get for you (usually a percentage of the improvement, plus taxes).

Can you sue your employer for severance?

Even if a severance package appears to be fair – especially when employers attempt to sweeten the pot by saying things like “gratuitous payment” – the amount of severance pay offered may not reflect the true value you are entitled to, as well as what you could be giving up by signing a settlement agreement and legal release. Not only are you giving up the right to sue your employer by signing a legal release, you may be making other promises to your employer as well, like cooperating if the employer needs your help in applying for a new patent, not talking bad about the employer, or not competing against the employer by joining a new company.

How does an employer limit its exposure to a severance payment?

An employer limits its exposure by making payment of the severance contingent upon the employee signing a release of claims. In most cases the signing of the release and payment of severance bars any subsequent claim by the employee against the employer for matters covered by the release.

Why do employers offer severance packages?

However, there are many instances where an employer offers severance to an employee in order to limit the employer’s exposure to liability. An employer limits its exposure by making payment of the severance contingent upon the employee signing a release of claims.

What happens if an employee turns down a severance package?

In fact, if an employee turns down the severance package and requests for higher pay, an employer could renege on the offer and provide no pay whatsoever. Surprisingly, this decision is legally allowed. However, if an employer wants the employee to sign a covenant not to sue, then the employer should consider negotiating a higher amount.

What is a severance package?

A severance package includes the pay and benefits that an employee receives when his or her employment contract has ended unexpectedly, generally due to a layoff or job elimination. An example of this includes if a company is expecting to downsize due to a downturn in profits or reorganization, and several employees in certain departments are laid ...

How long does a COBRA severance last?

Other terminologies that are generally outlined in a severance package include the following: COBRA benefits will usually continue for up to 2 years after your employment contract has ended.

What happens if an employee receives a continuation of salary?

But if the employee does receive a continuation of salary, then he or she will, for all intents and purposes, still be viewed as an employee of the company. This is because the employee will need to remain in the system to continue being paid. Also, the employee will continue receiving medical benefits.

How many days notice do you have to give to someone laid off?

Particularly, under the WARN Act, if an employer is laying off more than 100 people, then it must provide at least 50 days' notice to the employees who will be laid off. If the company fails to do so, then all employees who will be laid off are entitled to severance pay.

Do employers have to pay severance packages?

While there are no laws requiring employers to offer severance packages, the Fair Labor Standards Act (FLSA) requires employers to pay their employees the standard wages, which simply includes the last paycheck. Sometimes, the last paycheck will include unused vacation or sick days, particularly if the employer doesn’t provide a severance package to the employee.

Do you have to pay severance pay if you are terminated?

It is important to note that severance packages are not in fact required under the law; however, almost all employers today provide severance pay and severance packages to those employees who are let go from their position involuntary for any of the aforementioned reasons. Again, as previously mentioned, this is not to be confused with termination. If an employee is terminated for any reason, i.e. performance issues, inappropriate behavior at work, etc., he or she cannot and will not receive a severance package.

How to decide if you should accept a severance package?

A: Talk to an employment lawyer as soon as possible. To decide whether it makes sense to accept a proposed severance package, you’ ll need to figure out whether you have any claims against your employer and, if so, what those claims might be worth. For example, if you have a potential claim for discrimination or unpaid wages, those might be worth well more than what you are being offered in severance.

How long does it take to get a severance package?

A: In general, your employer can set the time limits for how long you have to consider the severance package. This might be a few days, or it might be a few weeks. However, special rules apply to older workers when they are asked to sign a release, waiving all claims against the employer, in exchange for the severance.

What should a severance plan spell out?

Your employer’s severance plan should spell out exactly which employees are entitled to the benefits of the severance package. The plan should also spell out when the severance package kicks in, such as when an employee is laid off or resigns.

What are the benefits of a severance package?

In addition to money, some severance packages offer other benefits, such as continued health coverage or retention of company property (for example, a laptop or company car). Some packages may also include outplacement services to help employees find new jobs, like job placement services and assistance with writing a resume or preparing for an interview.

What is severance in the employee handbook?

A current employee handbook states that severance will be paid to employees who are laid off or terminated for specified reasons. If the handbook promise is explicit enough to create a contract, a court might enforce it.

How many weeks of severance pay?

Some employers offer one or two weeks of salary as severance pay, while others use a formula based on your current salary and your years of service for the employer. And, some employers have different packages for different levels or tiers of employees. For example, severance packages for executives and managers might be much larger ...

How long do you have to wait to sign a severance agreement?

Your employer can't withdraw its offer of severance during the waiting period. And, you don't have to wait the full 21 (or 45) days; you can sign the agreement earlier, if you wish.

How to negotiate a severance package?

Use business reasons, such as your performance record or time with the company, when negotiating the terms of your severance package rather than personal details, such as having a baby or buying a house.

How to determine severance pay?

To determine a realistic payment range, research the company's severance policy in the employee handbook. Most companies state the formula they use to calculate severance pay in their handbooks. For example, if the employee handbook says you should receive three weeks of pay for every year you worked at the company, confirm that your severance offer equals that amount and keep your negotiations within that range.

What is a severance offer?

A severance offer is the compensation and benefits package a company gives employees when laying them off. It lists the compensation the employee will receive in exchange for leaving the company as well as the terms of that compensation. A severance offer's items might include:

Why is it important to negotiate a severance offer?

It's important to negotiate a severance offer if it does not provide you with the money or benefits you need to live on while looking for a new job. Before signing a severance agreement, read the contract carefully to identify elements you believe your employer could improve. Reasons to negotiate a severance offer include:

What is reemployment assistance?

Reemployment assistance: Ask the company for resources that can help you find a new job quickly, such as references, recommendation letters or outplacement services such as career counseling , resume writing or retraining.

Can you offer a severance package after being laid off?

If you receive a severance package offer after being laid off or asked to retire, you should understand the strategies and legalities of negotiating the best possible package. In this article, we explain how to create a thoughtful and effective severance offer response letter.

Can you use severance offer as leverage?

Use severance offer items you might not need as leverage for things you do. For example, if the company offers you access to a career adviser, but you plan to start your own consulting business and, therefore, do not find their assistance useful, ask the company to add the money they would have paid the adviser to your lump sum amount.