When to Negotiate Job Offers and Severance
Timing of Employment Negotiations
Information about Severance
Severance Pay Guidelines and Resources
Severance Pay Guidelines
Severance Negotiation Tips
Value-adding Items Easily Overlooked
Sure, the dollars to be paid to you are the focus on negotiation, the employer’s offers and your counters may go back and forth for weeks. In the weeks that follow the sign-off, these are five example elements of negotiation that are often overlooked and may have made a substantial difference in the ongoing value of your severance package:
#1: Unemployment Insurance. Are you qualified to file, and will the employer appeal your claim? You may not know where your stand unless this is addressed and promised in the separation agreement.
#2: Taxes. In what calendar year will the severance monies be paid and how will you be taxed? The options may be limited, but if you are at the end of a calendar year extra attention should be paid to the pay date arrangement.
#3: Reputation Management. The official classification of your separation, an announcement about your leaving the company, a promise how background checks will be responded to, and mutual non-disparagement clause; all negotiable items that may not be offered to you unless you ask.
#4. Mutual Releases. If you were in the contracts department, M&A, finance or a corporate officer, you may well want special language releasing you from the risk of future employer claims. Normally, all the releases in the separation agreement go one way only.
#5. “Garden Leave”, “On the Beach” timing. Instead of accepting the employer’s termination date it is often advantageous to propose a deferred termination date, allowing vesting and regular pay to continue to a predetermined date in the future. Not a good fit for every situation, but a powerful negotiation piece for adding significant value to a basic separation package.
One advantage of working with an adviser that has years of experience in fighting for employee-friendly separation agreements is the opportunity to explore what is worth negotiating for that’s not so obvious for you to consider.
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Forgotten Pieces in the Severance Negotiation Puzzle (2019)
Disclaimer -- These Articles are not legal advice; this entire website and its contents are general information for California employees. For legal advice, consult your lawyer or hire me! No interaction with this website creates an attorney-client relationship or privilege. Attorney Advertising. Thomas C. Walker, Esq. © 2015-8. All rights reserved.