I Received a Severance Agreement Offer Now What

Introvert Whisperer / I Received a Severance Agreement Offer Now What I Received a Severance Agreement Offer: Now What? When you have been terminated, you are not only inconvenienced with job searching and lost time/experience but also loss of income. If you are fired/laid-off for reasons unrelated to misconduct, you will most likely be offered a severance agreement.   A severance agreement because of its promise of payments, insurance benefits, and other amenities seems like a good answer to a bad situation. However, this contract usually has hidden terms that could adversely affect the worker, so before signing any severance package you should have it thoroughly analyzed by an attorney.   Does My Employer Have to Offer Severance Pay? Typically, employers are not required to offer severance pay. However, if you have a contract that requires a severance agreement or if your employee handbook has personnel policies including severance pay for terminated employees, it is required.   What Should Severance Pay Include? Every severance package should include five things:   Payments: A decent severance agreement usually provides one to two weeks of compensation for each year an employee worked for the company/business.   Insurance Benefits: In some cases, it is possible for you to continue enjoying the life, disability, and health insurance you had during your employment at the company provided and paid for by your employer for a certain period. This is not the same as COBRA, which requires employers to continue offering benefits but not pay for them.   Assistance Finding Employment: Severance agreements may offer services to help you, the former employee, find new employment through resume assistance, career counseling, and practice reviews.   Recommendation Letter: When you are looking for a new job, a recommendation letter, if not crucial, is very helpful. Severance packages can include this vital piece of paper.   Uncontested Claims: Employees who lose their jobs will no doubt file for benefits, and their employers will undoubtedly contest them. A severance package can include an agreement prohibiting your employer from contesting your claim.   One of the best steps to avoid severance agreement problems is to read the contract thoroughly. Ask yourself the question Could the severance agreement could hinder you more than help you? Sure, you may receive benefits that will aid you; however, you will no longer be able to dispute your employer if it does not include the benefits you thought it did. Avoid this hassle by having your lawyer review the contract and negotiate terms.