Severance Pay
Saturday November 1, 2008
I've received several inquiries this week about severance pay. One person I spoke to thought that her employer was required to give her a severance package (they aren't) and that she could negotiate a better deal than was offered. Another person has a very difficult decision to make. He can accept a generous severance package from his 25+ year employer or take his chances on being unemployed at the end of the year. That's a tough one.
Another concern, if you're lucky enough to be offered a severance package, or you have an employment agreement that provides for severance, is that severance pay is being downsized along with employees. I just read a BusinessWeek article that discusses how severance packages are on the chopping block.
What do you think? If you have lost your job were you offered severance? If so, would you consider it a generous package? Join our discussion or post a comment (below) to share your thoughts on severance pay.
Here's more on severance pay from the employer's perspective from Susan Heathfield, About.com's Guide to Human Resources.
More: Severance Pay | Severance Packages
Photo Copyright webking
Comments
So, can you negotiate a severance package? I’m being laid off because the entire division is being closed. The package we are being offered is less generous than a voluntary buyout that several people took two years ago. Do you have to threaten to sue from wrongful termination in order to get a better deal, or can you just ask for more money?
I spoke to an HR expert who told me that if the lay-off is part of a group reduction in workforce, that is very unlikely that an employee would be able to negotiate a different severance package.
I received the economic layoff almost two weeks ago. I was offered a small severance pay. Considering what I have read, I think I’ll consider myself Lucky to have even gotten that!! It’s extremely difficult and frustrating to find a new job. Atleast the severance package helps for the moment!!
Hi,
I received a small severance package when I was laid off two weeks ago and I am very grateful. However, I am worried about what to do with the money? Should I pay off as much of my debt as possible or save the money in case of emergencies? Please help.
My company closed down due to port authority buying out the remaining 11 years on the lease for 60 million they offered the union employees a week pay for every year worked and recently found out 2 of the 5 managers along with 2 out of the 5 office staff were also giving the same package with a 25 year max (cut off) my question is are we the ones that were left out with nothing entitle to severance pay as well.