Severance Packages
by: Adapted from Findlaw.com
Severance Packages
What are they?
Many workers who are laid off or fired receive some kind of package. The
law does not require employers to give them. So why do they do it? In
exchange for a severance package, the worker promises not to sue the
employer.
What is included in a severance package?
It may include the following:
-
Insurance: You get to keep your health insurance after you are let go.
But you may have to pay for it;
-
Unemployment compensation: If you file a claim, your employer will not
contest your claim;
-
Help with getting a new job: Your employer may help you search for a
new job and even get training;
-
Letter of reference: You and your boss may agree to wording of a
letter. This is important if you left your job on bad terms;
-
Money: You may get a check. This is likely based on how many years you
worked for the company.
How do I know if I get a severance package?
You'll get one if
-
it is in your contract with your employer;
-
your employee manual states that you will;
-
your co-worker get packages;
-
your employer made a verbal promise to you. (Keep in mind, verbal
promises may be hard to prove.)
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