How Much and What Type of Benefits Should An Employee Expect in a Severance Pay Package?
The amount of the severance pay is typically based on the employee’s length of service, but may also be based on other factors such as the company’s financial state. The amount of severance pay offered by an employer is typically non-negotiable, but an employee may be able to successfully negotiate for other non-monetary benefits such as: a favorable letter of reference, the retention of certain company property (e.g. cell phone or computer), continued medical benefits for a specified time, an educational course(s), etc… Both the employer and employee should also be mindful of how the severance pay is to be paid. Severance paid in a “lump sum” manner typically won’t restrict the employee’s right to unemployment benefits, but severance paid over time as if the employee is still on payroll, may delay the employee’s ability to collect unemployment. What Types of Releases Will The Employer Expect In Exchange? Typically, the employer will seek to have the employee release all non-waiveabl
