Leaving a job, whether by choice or as a result of termination, can be an emotionally and financially challenging experience. It’s even more complicated when a severance package is on the table. While it might seem like a simple matter of accepting or declining the offer, the truth is that severance agreements are legal contracts with serious implications for your future. That’s where an attorney can make a real difference.
Understanding Severance Packages
A severance package is more than just a financial payout. It often includes a variety of terms that can affect your rights, benefits, and future opportunities. While some companies offer standard packages, others tailor severance terms based on factors like company policy, the reason for termination, and the employee’s tenure or position. Severance agreements might cover salary continuation, bonuses, unused vacation pay, health insurance coverage, outplacement assistance, and even stock options.
Many employees assume these agreements are set in stone, but that’s rarely the case. With the right approach, severance terms can often be improved, which is where an attorney’s guidance becomes essential.
Why You Shouldn’t Go It Alone
When you’re presented with a severance package, it’s easy to feel a sense of urgency to sign quickly, especially if you’re worried about financial stability. Employers often frame severance agreements as a take-it-or-leave-it situation, but in reality, there’s almost always room for negotiation. The stakes are high, and the terms you agree to can have lasting effects on your career and finances. An attorney brings a trained eye to the table, helping you understand the legal language, spot potential red flags, and identify areas where you can negotiate for better terms.
Key Areas Where an Attorney Can Help
Clarifying Legal Language
Severance agreements are filled with legal jargon that can be confusing for anyone without a legal background. Attorneys are skilled at breaking down this language so you can fully understand what you’re agreeing to. For instance, they can explain the impact of any clauses or the scope of a confidentiality provision. By ensuring you understand every term, an attorney empowers you to make informed decisions.
Assessing Fairness and Market Standards
An experienced employment attorney knows what’s considered fair and standard in severance agreements based on your role, industry, and location. They can compare your offer to market benchmarks and identify whether the package aligns with industry norms. If your offer falls short, they’ll help you build a case to push for better terms.
Negotiating for Better Terms
Attorneys are skilled negotiators who understand how to advocate for their clients effectively. They can help you request a higher payout, extended benefits coverage, a longer period of salary continuation, or more favorable terms. They know how to approach the employer’s legal team and frame arguments in a way that increases the likelihood of a positive outcome.
Protecting Your Rights
Signing a severance agreement often involves waiving certain rights, such as the right to sue the employer for wrongful termination or discrimination. An attorney will review these waivers carefully and help you evaluate whether you’re giving up more than you should. If your departure involves potential legal claims, such as harassment, discrimination, or retaliation, an attorney can advise you on whether negotiation or pursuing legal action is the smarter option.
Timing Is Everything
Many employees feel rushed to sign a severance agreement, especially if they’re offered a tight deadline. It’s important to know that you have the right to take your time, and an attorney can help you navigate this timeline. In many cases, federal law requires a waiting period for certain agreements, such as those that involve a release of age discrimination claims under the Older Workers Benefit Protection Act. Even if your situation doesn’t fall under specific legal requirements, an attorney can help you request an extension or push back on unreasonable deadlines to ensure you have enough time to review the agreement thoroughly.
What to Expect When Working with an Attorney
Hiring an attorney doesn’t mean you’re preparing for a legal battle. In fact, most severance negotiations don’t turn into lawsuits. Your attorney’s job is to be your advocate, helping you secure the best possible deal while maintaining a professional tone with your former employer. They’ll typically start by reviewing the severance agreement in detail, identifying areas that may need revision, and discussing your goals. Then, they’ll help you draft a response or a counter-proposal, often communicating directly with the employer’s legal team to negotiate on your behalf. In some cases, the mere fact that you’ve retained legal counsel signals to the employer that you’re serious about protecting your interests, which can lead to a more favorable outcome.
The Long-Term Impact of a Good Severance Agreement
A well-negotiated severance package doesn’t just provide short-term financial relief. It can set you up for long-term success by giving you the time and resources to find your next opportunity, maintain health coverage, and protect your professional reputation. It can also help you avoid restrictive terms that could limit your ability to speak freely about your experiences.
Call Atlas Law Center Today
Negotiating a severance package carries significant legal and financial implications, and while it might feel overwhelming, you don’t have to go through it alone. An attorney can be your guide, advocate, and partner in making sure you leave your job on the best possible terms.
When the stakes are high, obtaining legal advice is one of the smartest moves you can make. Call Atlas Law Center today at 630-394-6350 to schedule a free consultation with our team.
