Should You Accept a Severance Package? Factors You Should Consider
When companies are conducting layoffs, they often offer employees severance packages upon termination. The details vary, but most severance packages offer continued pay or benefits for a set amount of time. Severance packages often include certain conditions for these benefits, such as an agreement not to pursue legal action or speak badly of the employer.
Employees are not obligated to accept a severance package, or to accept it as is. Individuals in Allen, TX, Plano, TX, Frisco, TX, and surrounding areas who are considering whether or not they should accept a severance package can work with severance lawyer Dan A. Atkerson. He will review your severance package and advise you if it is in your best interest to sign it.
Don’t Rush Into Signing Without a Review
Employees often feel pressured to accept a severance package. The threat of unemployment leaves many people feeling vulnerable, causing them to rush into signing a severance agreement without fully reviewing its details. Employees could also believe that they have to accept a severance package as soon as it is offered, or risk losing it.
In reality, employees have the right to consider the details of a severance package before accepting it. State law may even require that employers provide workers with a window of time to review a severance package. Depending on where a person is employed they may have up to 21 days to decide if a severance package is right for them.
Look for the Fine Print
A severance package can be beneficial upon termination. Severance packages may include continued pay, a lump sum payout, continued medical benefits, or assistance in pursuing new employment. However, it is essential that workers not only consider the advantages of a severance package, but also the potential red flags, before accepting it.
Some terms that may be included in a severance package include:
- A non-compete clause
- A non-disclosure clause
- Restrictions on rights, including limited ability to take action against the employer for wrongful termination or other issues
- Agreement to assist the company through its transition (i.e. being available to answer questions, provide support, etc.)
Employees may be willing to accept the fine print of a severance package, but it is essential that they fully understand all terms (and their potential consequences) before signing a legal document. As a severance lawyer, Dan A. Atkerson can explain all aspects of a severance package so that employees know if it is in their best interest.
Consider Negotiating
A common misconception about severance packages is that they are final offers. If someone wants to reap the benefits of a severance package, but are unhappy with some of the terms, they may actually be able to negotiate the parts of the severance package that are not favorable. If employees want to negotiate aspects of a severance package, they should work with a knowledgeable lawyer who is prepared to look out for their best interests.
Get In Touch
If you are facing a layoff and have been offered a severance package, Dan A. Atkerson can review the offer to ensure you fully understand its terms before deciding whether to accept it. To schedule a legal consultation, send us a message online or call (214) 383-3606 at your earliest convenience.
