Severance Package Negotiation

[Underdog07]

I know many exceptional lawyers in NY - send me a PM if you like and we can discuss

Galactus is right, the decision of whether retaining an attorney is worth the time/money largely depends on your position and compensation level - meaning there is not point in spending money on ana attorney if it will not net you anything additional

[hawkeyethearcher]

just go postal and they will give you whatever you want

[Dan_Lebou]

Check out your contract of employment (if you have one). It usually states in there what you are entitled to receive if you are made redundant.

[Kingofthehill78]

Originally Posted by Closetnerd

A layoff is a layoff........they are ALL unfair but they happen.
Even here in California I have never heard of negotiating for your severance package. I would just recommend you stay in good graces for the last few months and see what they offer you. Again, you can sue anybody for anything nowadays so why spend the money on a lawyer up front.
Wait till you see the offer then decide after you have something factual and not a guesstimate......then consult a lawyer if you feel the need.

or you can walk around work and every so often scream Boom! then see what they do.... you might get a bigger check to get you out faster...

[ansel39]

there are not alot of laws that cover severence. they all depend on the state. it makes it home long between termination and the time they pay you. also that depends on if it was involuntary and voluntary

[MinMay]

Advantage of accepting severance:
1. you get additional paid
2. you get continuation of health plan
3. you get unemployment check for 1-2 years
4. you leave in good term with reference

Disadvantage of accepting severance:
1. you do not get additional paid
2. you get no Cobra continuation of health plan
3. you get no unemployment check
4. it's on record if you plan on bringing them to court.
5. some companies will ask you if you had sued any previous employers so you might have a hard time looking for another job.

When you started the company, you probably sign a piece of paper stating that the company can let you go anytime, and vice versa.

The severance package is given to employees so that you can't bad mouth the company and their people and sued them for whatever reason.

If you have a legitimate case with evidence that can award you millions, then go for it. Otherwise, the only people who will benefit is the lawyer.

The company can read your email, track your IM conversation, track your activity online, etc and make a case against you.

[TrueFaith]

I worked for the same company for almost 10 years. 3 years before being laid off the company was bought out by a conglomerate that drove it right into the ground. In the last year there I saw two bosses above me fired for no reason. They both received severance packages, but were not allowed to discuss what they contained. It was the management's way of not letting it get out how badly they had ruined the company. One day we went from Chapter 11 reorganization right into Chapter 7 liquidation almost overnight. The employees were escorted out of the building by security officers and the doors were closed. I was left with the company owing me 5 weeks of vacation and another week of accrued comp time. I was told to "get in line" with the other creditors who had sued the company, but the chances of getting what I was owed were practically nil since the company owed so much already. The managers who killed my 60-year old company all landed on their feet and are now "working their magic" at other companies in the same industry.
I'd worry more about making sure you have any kind of severance offer in writting well before you're laid off rather than trying to "negotiate" it, or you may end up getting totally stiffed like I did.

[Makkari1]

I never heard of negotiation of a severance package. Typically companies don't have to offer it but some do. If you take the severance you will not be eligible for unemployment compensation for a while at least until the money of the severance runs out.

The perfect thing to do is to have a replacement job lined up as soon as this one ends and take the severance package as well but rarely does that work out that way. So the next best thing to do since you know this is going to happen is start looking for work now and take any job no matter how small it pays and take the severance as well. This way you'll have money flowing in and you can look for a better job while you're doing this. Don't get to comfortable with the idea of a severance package because I assure you that the severance will run out quicker than you think and unemployment is a joke at best.

[hawkeyethearcher]

Originally Posted by Makkari1

I never heard of negotiation of a severance package. Typically companies don't have to offer it but some do. If you take the severance you will not be eligible for unemployment compensation for a while at least until the money of the severance runs out.

The perfect thing to do is to have a replacement job lined up as soon as this one ends and take the severance package as well but rarely does that work out that way. So the next best thing to do since you know this is going to happen is start looking for work now and take any job no matter how small it pays and take the severance as well. This way you'll have money flowing in and you can look for a better job while you're doing this. Don't get to comfortable with the idea of a severance package because I assure you that the severance will run out quicker than you think and unemployment is a joke at best.

my wife was with 4 companies that closed down and got severance from all of them and got full unemployment right away each time. so you can collect right away. her severance only counted against her first unemployment check after that from week to week if she didn't make money she got a check.

[Makkari1]

Originally Posted by MinMay

Advantage of accepting severance:
1. you get additional paid
2. you get continuation of health plan
3. you get unemployment check for 1-2 years
4. you leave in good term with reference

Disadvantage of accepting severance:
1. you do not get additional paid
2. you get no Cobra continuation of health plan
3. you get no unemployment check
4. it's on record if you plan on bringing them to court.
5. some companies will ask you if you had sued any previous employers so you might have a hard time looking for another job.

When you started the company, you probably sign a piece of paper stating that the company can let you go anytime, and vice versa.

The severance package is given to employees so that you can't bad mouth the company and their people and sued them for whatever reason.

If you have a legitimate case with evidence that can award you millions, then go for it. Otherwise, the only people who will benefit is the lawyer.

The company can read your email, track your IM conversation, track your activity online, etc and make a case against you.

I have to take issue with some of your statements.
Advantage of accepting severance

1. you get additional paid (true but its the money they most likely owe anyway.)

2. you get continuation of health plan (partially true you get this offer regarless if you take the severance or not. What make the severance more acceptable is that most companies will subsidized Cobra payments making them less.)

3. you get unemployment check for 1-2 years (Not true, an unemployment check is given by the state government not the employer. Accepting a severance package will delay you receiving any unemployement compensation until your severance money runs out.)

4. you leave in good term with reference (true but companies can't by law leave a bad reference either).


Disadvantage of accepting severance:
1. you do not get additional paid (What additional pay do you think they owe? The company don't have to offer it in the first place.)

2. you get no Cobra continuation of health plan (not true Cobra can be offered to anyone really, a lot of companies just subsidize the payment for you but you can buy it without their involvement.)

3. you get no unemployment check (not true, as I stated above you are not eligible for unemployment if you accept the severance package until the severance runs out and believe me the Unemployment Office has formulas that determine when that is based on what you were paid in the severance package. (You are talking to a veteran of this).

4. it's on record if you plan on bringing them to court. (not true, how are they going to know this until you actually file a Law Suit?)

5. some companies will ask you if you had sued any previous employers so you might have a hard time looking for another job. (this may be true but you can sue them for not hiring you because of your past suit history..)