Negotiating severance agreements after termination
California employees often rely on their severance agreements to keep them going until they are able to find another job. They have the ability to negotiate, and they do not just have to take what their employer offers. Negotiating a strong severance agreement is about more than just pay.
Why employers give severance agreements
Employers offer severance agreements for a number of reasons. For starters, they may be trying to protect themselves from a lawsuit. They may also want to ensure confidentiality of both their company secrets and what happened with your exit. Accordingly, they are willing to pay extra salary and other benefits. The company does not always have absolute power here, and you could negotiate in some circumstances.
What is offered in a severance agreement?
The biggest question in a severance agreement is how much pay you will receive. Beyond that, you will also want to keep your health insurance for as long as possible. Employers may also offer outplacement services and other corporate perks that last for the given duration.
You may have the right to negotiate better terms
You should always figure out whether you have the leverage to try to get better terms. It all depends on the situation. If your termination is based on individualized circumstances, you may be able to discuss the terms. However, if you were part of a large-scale layoff, the employer may be less likely to negotiate. Accepting a severance package usually takes away your right to sue the employer. This is why you should consider consulting with an attorney before you sign the document placed in front of you.