NJ & NY Severance Package Negotiation Attorneys
Helping New York and New Jersey clients get better severance packages
In today’s economy, many people are being terminated from their employment. Most employers provide departing employees with some type of termination or severance “package.” Many people do not realize that they can usually negotiate the terms of this severance package, even if their employer has told them to “take it or leave it.”
The main reason a company offers a severance package is to get the employee to permanently give up their right to sue the company. The peace-of-mind this affords the company is worth a lot to them. Therefore, you should definitely not sign anything until you have had the opportunity to review the severance package carefully, and negotiate the terms of your departure.
The following terms of your severance agreement typically may be negotiated:
- The severance payment – Employers typically give exiting employees one week’s severance pay for every year they worked for the company, but greater payouts can definitely be negotiated. (Middle management and executives almost certainly can get a great deal more!)
- Your health benefits can be extended. Although COBRA health insurance allows for the temporary continuation of your health insurance for a period of 18 months, the policy is usually quite costly. An employee can try to negotiate the continuation of his/her health benefits for a period of time; for example, until he/she finds a new job.
- Additional benefits. Your employer may provide assistance, such as job counseling, to help you get a new job.
Although you can attempt to negotiate the above terms by yourself, there is no question that hiring an attorney will show your employer that you mean business! Remember, one of the main reasons why you are getting a severance package in the first place is to ensure that you don’t sue the company for discrimination, wrongful termination, etc. When the company is contacted by your attorney, they know that an attorney is standing behind you and that a lawsuit is a definite possibility if you do not eventually agree on severance terms.
If you hire The Salvo Law Firm to negotiate your severance package for you, we will do so on a contingency fee basis. That is, you will pay us nothing unless we are able to get you more money than what was originally offered. Our fee is 1/3 of the additional money we are able to get for you.
So, for example, if your employer wants to give you a severance payment of $5,000.00, and we are able to negotiate the severance payment to $10,000.00, you will keep 100% of the original $5000.00 that was offered to you, and you will keep 2/3 of the additional $5,000.00 we were able to negotiate for you, while our fee is the remaining 1/3.
KEEP IN MIND: When presented with a severance package, DO NOT SIGN until you have had an adequate chance to review all of the terms of the agreement and decide if you want to hire an attorney to try to negotiate more favorable terms for you. (Most employers will give you 21 days to review the agreement, and will encourage you to consult an attorney. Once you sign the agreement, however, you only have 7 days to change your mind.)
What if I have already signed the severance agreement?
If you have already signed your severance agreement and the 7 day period to withdraw your signature has passed, you may still have some options available to you, depending upon the circumstances which existed when you signed the agreement. If your employer put undue pressure upon you to sign the agreement and encouraged you not to hire an attorney, the court may allow you to withdraw your signature even though the 7 days have passed.
CALL THE SALVO LAW FIRM for assistance with your severance package:
- If you have just been terminated
- If you anticipate being terminated
- If you have just received a severance agreement
- If you have recently signed a severance package
Your one-hour initial consultation is always complimentary. We are experienced, tough employment litigators who will fight for maximum compensation.