How Do I Negotiate My Severance Agreement?
You have just been terminated from your job. Your employer gives you a bunch of paperwork to review and sign. Though not required if you are terminated from a job, your employer also offers you severance pay and an accompanying agreement to sign. If you want to negotiate your severance pay and agreement, keep the information that follows in mind.
Should You Sign the Severance Agreement Offered to You?
Not right away! The first thing (and most basic consideration) is not to sign anything you have not read, especially if you are not sure you understand what happens once you sign the agreement. The second thing you should do is make sure you take time after you receive the agreement to review it when you are calm and any surprise surrounding the termination sinks in. The third thing to be aware of are any deadlines in connection with signing and returning the agreement. You should know that any employer who demands you immediately sign the severance agreement on the spot may be in violation of the law since there are a number of federal and state laws requiring employees have twenty-one (21) days to review any offered severance agreement.
Okay, I Have the Agreement, So How Do I Negotiate?
Find your leverage and then press. Do you have legal leverage? First, you need to determine whether there was any potential violation of the law in connection with your termination or during the course of your employment that might give you an ability to negotiate with your employer. Was your termination related to a protected class (e.g. race, age, disability, religion, sexual orientation, etc.)? Were you treated differently from your peers because of a protected class? If so, you may have legal leverage.
Maybe you have personal leverage. Do you know the company’s deep, dark secrets? Did you serve the company loyally and effectively for a long time? That may be leveraged as well.
But do keep in mind that just because your termination is unfair and you want more severance pay, these do not necessarily give you much leverage to negotiate for additional severance pay or other more favorable terms. Since it may be hard for you to know whether a violation of the law occurred, this is where a lawyer can help you work through the process.
If you think you would like a lawyer to help you, act quickly since this will make the whole process smoother and avoid a situation where you are facing a signing deadline. There are many other concerns that may be specific to your employment situation that could be negotiated and which an employer might be willing to change or add to a severance agreement. If you would like to discuss your situation with us, including whether you should sign an agreement you have received, please feel free to call or email us at any time. You will be on the phone with an attorney within 24 hours.