By Employers Customize Severance Pay Packages
Severance packages are typically provided to employees being laid off due to a company’s restructuring or downsizing. While there are no laws in the United States mandating employers offer severance pay, some companies do offer these packages to defuse hard feelings and help people find new jobs. The most common perks include severance pay, health insurance coverage and company equipment like computers. Those who have been employed at the company for longer periods of time or higher ranks within the organization may be eligible for additional severance benefits such as stock options.
The severance package should be written in plain language to ensure it’s understood. If the terms are too complicated, it’s likely an employee will reject it and walk away without anything to show for their time at the company. It’s also a good idea to add a confidentiality clause that will limit the release of severance package documents to family members, accountants, lawyers and government agencies.
When a person is laid off, their world turns upside down. It’s a shock and can leave them overwhelmed, unsure of where to start and how to cover expenses until they get a new job. Severance packages can help ease that transition and allow them to buy food, rent a place to live and pay utility bills. They can even go as far as to help with the cost of job-searching software and interview suits.
Can Employers Customize Severance Pay Packages?
However, an employer can try to reduce their severance package by using an improperly-worded termination clause. This means you need to review the severance agreement closely and consult with an employment law attorney if necessary. A lawyer can also help you determine how much severance pay Ontario you’re entitled to and if there are any stipulations that you should negotiate.
The most important thing to remember is that you shouldn’t sign any agreements before reading them completely. An experienced employment law lawyer can help you understand the terms of a severance package and give you advice about your legal rights. The lawyer can also assist you with negotiations about non-compete and non-disclosure agreements, which are a standard part of many severance packages.
In most cases, you can’t sue an employer for wrongful dismissal unless there is proof of discrimination or harassment. However, if your former employer has not paid you the severance package you are owed or has included an unfair clause in the agreement, you might be able to file a lawsuit against them.
If you are a senior worker, be careful when negotiating severance packages because some companies might use this opportunity to include restrictive agreements. It is best to consult an experienced employment law attorney before you agree to any severance package terms that will restrict your future career prospects or ability to move on from the company. If you are having trouble negotiating the terms of your severance package, contact Monkhouse Law to see how an employment lawyer can help. Our team has experience resolving severance packages for our clients, including the removal of inappropriate clauses and the addition of appropriate benefits.