Severance Pay – 3 Things to Know
I’ve been on both sides of the negotiation table when it comes to severance pay. I have drafted and negotiated them on behalf of companies as well as reviewed and negotiated them on behalf of departing employees. This experience allowed me to understand the value of providing an employee with severance pay from both perspectives. Below are the top 3 things you should understand about severance pay. This information is applicable to both an employer who may want to offer severance pay to an employee at termination as well as an employee who was offered severance pay along with a multi-page agreement to sign, The law does not require payment of severance unless there is a contractual obligation. At the time of employment, employers sometimes promise to give an executive level or other key employee severance pay should the employment relationship end, usually without cause, and under certain circumstances. These circumstances may be the business’s closing or change in ownership, reductions in force, etc. The promise of severance pay is usually offered as an extra incentive to entice top talent. … Continue reading