Being asked to leave a company that you have poured years into improving can be an emotionally distressing time. This is why it is critical that you take time to think over any severance package that is offered. Severances are up for negotiation and according to Investopedia, most employees are given 21 days before they have to accept a severance agreement and even then, they have an additional seven days to change their mind. If you are being terminated from your job, it is time to speak with a Toledo severance negotiation attorney who can assist you with determining what constitutes a fair severance package given the work you have put into the company.

Key Issues in a Severance Package

Forbes lists several key issues to consider when examining any severance package. They include:

  • Severance Pay—It is important to look at what the terms of severance pay will be. Will it be paid in a lump sum or over a period of six months to a year? It is ideal to know what other employees with similar experience at the company have received in the past. Other details to look at include whether the pay will continue after death or getting another job position and whether there is potential for clawbacks.
  • Paid vacation time—Severance pay should also include paid time off that has accrued by the employee over the years.
  • Options and restricted stock units—If you own stock in the company, you typically have a window of time to exercise the stock options after being terminated, but these terms can also be negotiated in the severance package.
  • Medical benefits—Under the 1995 Consolidated Omnibus Budget Reconciliation Act (COBRA), employees are allowed to stay with the company’s medical plans for up to 18 months after their last day of work. However, they may be responsible for paying the monthly premiums unless otherwise negotiated in the severance package.
  • Legal fees—Some companies may be willing to pay the legal fees for you to have a Toledo attorney advise you on your severance package prior to accepting it.
  • Transitional Consulting—If you have been with the company for a long time, you may be a vital resource for them even after you leave because of your wealth of knowledge about what has occurred over the years. A severance package is also a place where the company and employee can come to an agreement about the employee consulting for a period of time after they leave the job for a smooth transition to the new leadership.

What Does My Employer Gain from a Severance Package?

Severance packages also benefit the company. When you accept a severance package, you are most likely rescinding your right to make a claim against your company. This general release of liability means you will no longer be able to sue your employee for any wrongdoing. Other issues to watch carefully for before accepting include non-compete clauses and non-solicitation of clients or employees provisions.

Call a Toledo Severance Package Attorney Today

Severance packages can be complex and you want to ensure the terms allow you to successfully transition to what comes next in life. Let the skilled Toledo severance package attorneys at Coffman Legal, LLC assist you in going through the severance package and advise you on whether it is in your best interest to accept it or negotiate further.  Call us at 614-949-1181 to schedule a free consultation.

Contact Coffman Legal Today

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