A sudden and unexpected end to your job can trigger a cascade of economic uncertainty. A tidy severance package can cushion the blow, but may leave you with unanswered questions.
Severance packages are not mandatory in California. You may be happy to receive a parting gift from your boss, but you should still take steps to ensure fairness. The answers to these questions about severance pay can offer clarity.
What do severance packages include?
They generally include components like a lump sum payment or salary continuation for a preset period. They may also include payment for unused leave, extended health benefits and sometimes outplacement services to help you find a new job. Other perks might include bonuses or stock options.
Can you negotiate a severance package?
Yes, you can and should negotiate the terms of a severance package. It is essential to understand that the initial offer may be just a starting point. Consider consulting with a legal representative who can guide you through the negotiation process and help you secure the best possible terms.
Can you receive severance pay if fired for cause?
In most cases, severance pay is not offered to employees who are fired for cause, such as misconduct or policy violations. However, it ultimately depends on the employer’s established policies and the specific circumstances of the termination.
What should you do if the severance offer is unfair?
If you believe your severance offer is unjust, do not sign the agreement. Instead, seek legal guidance immediately. You may have a limited time period to consider the offer – early assistance helps you negotiate better terms and reach an agreement before this period expires.