Are You Eligible for Severance?
Employees who have been laid off or let go might not be sure if they are entitled to severance pay. This can be a complicated question in some ways because of various rules that govern this benefit related to a termination or a layoff. Some industries experience the need for layoffs consistently, while other kinds of businesses almost never have to use this method to release people from their employment contracts.
If you have been laid off or let go, this is an important question that you need to be able to answer. You might be missing out on important benefits and pay that you are owed related to the end of your employment, and seeking more information about this kind of pay can be very beneficial — and can help you to get access to the benefits that you need to have time to find your next job.
Who is Eligible for Severance Pay?
Severance pay is not owed to every employee who is laid off or let go. This is a benefit that is offered to employees who were not released from their contract, or fired due to poor performance or other breaches of rules and regulations.
Employers are required under the guidance of the W.A.R.N. Act to provide 60 days notice to employees who will be laid off. If you are not given this warning, you are entitled to severance pay. Individuals who are fired without notice are also entitled to this benefit. In some cases, employers will also offer this payment as a means to prevent issues with an employee — related to harassment, unpaid wages, or wrongful termination.
How Much Pay Will I Get?
The compensation that is offered for severance pay can vary. In most cases, the severance pay is scaled based partially on the number of years that you have spent with the company. The amount might also be impacted by your salary amount and whether or not you earned commissions from sales while performing your job duties.
The amount that you are offered is not going to be consistent, and you will find that you could talk to many different people who have received this kind of pay and find out that they all received a different compensation offer.
How Does This Kind of Benefit Work?
This is actually a negotiable pay benefit related to your termination. You should consider getting a lawyer to help support you as you navigate this part of the severance process. Your time with the company — as well as your position and rank within the company — can be a bargaining chip related to the amount of severance pay that you are offered.
While this is almost always a monetary benefit that is delivered as a lump sum, there are also instances where you can negotiate for other benefits instead of just taking your money and moving on. You might ask for health insurance to be paid for a few months, or you might want to keep the laptop that you used at work. There are no laws that prevent this kind of deal-making, but it can be a slippery slope that can lead to you getting less value from your severance package than you wanted.
Once the severance deal is agreed upon, a contract will be signed by both you and your employer. This contract will provide the guidelines for the payments and benefits that you have been offered as a result of your termination. Keep in mind, however, that you will have to pay taxes on the money that you are given as a result of your severance package.
Severance offers can be tricky to navigate without the support of a legal expert, which is why it is so important to secure a lawyer if you have been told that you are going to be released from your job without notice. You will want to have help to get the best deal for your needs and to make sure that you have the funds required to support yourself until you find another job.
Contact Us Today
If you have been told that you are being terminated and you need help negotiating your severance package, we can help! The team at Hux Law Firm are experts at navigating the severance pay and benefits process, and you can count on us to get you the best deal for your needs. You should not have to worry about being able to make ends meet while you are looking for a new job, and getting the right compensation package can help make this process much less stressful. Complete our online contact form and someone from our team will reach out to you shortly.